Arkhouse Management, a real estate investment firm, announced Sunday that it and Brigade Capital Management have increased their offer for Macy’s after the department store chain rejected an earlier offer as too low.
The companies are currently offering to acquire Macy’s shares they don’t already own for $24 per share, about 14% higher than their previous offer of $21 per share.
The new offer for the company represents a premium of about 33% to Friday’s closing price of $18.01, valuing the company at $6.6 billion.
“We continue to offer the company an attractive alternative solution by selling the company at a significant premium, which will provide significant value and immediate liquidity to Macy’s stockholders,” Arc said. House stated.
“Macy’s Board of Directors will carefully consider and evaluate the latest proposal,” Macy’s said in a separate statement.
In December, the two investment companies had submitted a proposal to acquire Macy’s shares they didn’t already own at a price of $21 per share, but the department store owner withdrew the proposal due to concerns about the deal’s financing and valuation. refused.
Like other traditional department store operators, Macy’s has struggled to compete with younger online competitors and smaller brick-and-mortar peers.
This created an opening for Arkhouse and Brigade to pressure Macy’s to explore a sale.
Last month, Macy’s faced a board challenge from Ark House Management after nominating nine director candidates to the department store’s 14-member board, including executives with experience in retail, real estate and capital markets. is also facing.
