Arkhouse Management and Brigade Capital are raising their offer to buy Macyâs by almost $1 billion, in hopes of taking the department-store chain private.
In a statement Sunday, the investor group said it was increasing its bid to acquire Macyâs
M,
to $24 a share, or about $6.6 billion, up from a bid of $21 a share, or about $5.8 billion, that Macyâs board rejected in January, saying at the time that it lacked âcompelling value.â
Arkhouse and Brigade said their new offer is a 51.3% premium to Macyâs share price as of Nov. 30, 2023, when they submitted their original proposal. And they noted itâs a 33% premium to Macyâs stock price as of Friday, when it closed at $18.01 a share.
âWe remain frustrated by the delay tactics adopted by Macyâs Board of Directors and its continued refusal to engage with our credible buyer group,â Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said in a statement. âNonetheless, we are steadfast in our commitment to execute this transaction.â
In a statement Sunday, Macyâs confirmed it had received the offer and said it would âcarefully review and evaluate the latest proposal consistent with the boardâs fiduciary duties and in consultation with its financial and legal advisors.â A Macyâs spokesperson said there was no additional comment.
Macyâs announced a restructuring plan last week that includes closing 150 stores, including its iconic flagship store in downtown San Francisco. Separately, the company also announced fourth-quarter earnings that beat expectations.
âWhile the restructuring plan Macyâs unveiled last week failed to inspire investors, the fourth-quarter earnings and year-end results have given us further confidence in the long-term prospects of the company if redirected as a private company,â Kahane and Blackwell said Sunday.
Macyâs shares are down about 10% year to date, and have fallen 21% over the past 12 months, compared to the S&P 500âs
SPX
8% gain in 2024 and 27% gain over the past year.
