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A private equity group has made a $5.8 billion offer to take Macy’s private.
The offer from Arkhouse Management and Brigade Capital Management values the old department store chain at $21 per share, The Wall Street Journal reported. The two companies already owns a number of Macy’s (NYSE: M) stock.
Considering Macy’s (M) closing price on Friday of $17.39, the offer to that closing price is a premium of ~21%.
The newspaper said the offer was made on December 1 and that the company’s board has met to discuss it, although there is no word on what the board’s position is on it.
Arkhouse and Brigade Capital believe Macy’s (M) is undervalued and are willing to increase their offer subject to due diligence. They also have the support of an investment bank that has sent a letter about their ability to raise capital to complete the deal.
So far, shares of Macy’s (M) are Down ~14%.
In its third-quarter financial results released in November, the company performed at both high and low levels, and also raised revenue and earnings per share expectations for fiscal 2023. Although it reported a profit turnover decreased by approximately 7% compared to the same period last year. .