![Investor group launches $5.8 billion buyout offer for Macy's-WSJ](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJB909L_L.jpg)
©Reuters. FILE PHOTO: Shoppers look at clothes during Black Friday deals at Macy’s department store at Roosevelt Field shopping center in Garden City, New York, U.S., November 24, 2023. REUTERS/Shannon Stapleton/File Photo
(Reuters) -An investor group made up of Arkhouse Management and Brigade Capital has made a $5.8 billion bid to take department store chain Macy’s (NYSE:) private after fierce competition from online rivals took a big bite out of its value taken, the Wall Street magazine reported on Sunday.
Arkhouse Management, a real estate-focused investment firm, and Brigade Capital Management, a global asset manager, submitted a proposal on Dec. 1 to acquire Macy’s stock they don’t already own for $21 per share, WSJ said, citing people familiar people. said with the matter.
The offer for the Bloomingdale parent company is at a 20.76% premium from Friday’s closing price of $17.39.
The group already has a major stake in Macy’s through funds managed by Arkhouse and discussed the proposal with the department store chain, whose board subsequently met to discuss the offer. It is not clear how the retailer views the proposal, the Journal reports.
Arkhouse and Brigade believe Macy’s is undervalued in the public markets and have indicated they are willing to increase their offer subject to due diligence, the report said, adding that an investment bank has provided a letter supporting the firm’s equity group to raise the necessary financing. to get through the deal.
Macy’s, Arkhouse and Brigade did not immediately respond to a Reuters request for comment on the report.
The retailer crushed analysts’ quarterly profit estimates on lower inventories and strong demand for beauty products in November, signaling that efforts to reduce inventory from 2022 highs were finally successful ahead of the all-important holiday shopping season.
Macy’s has a market cap of about $4.77 billion and its shares are down nearly 15.79% this year.