Macy’s Mulling $5.8 Billion Buyout Offer: Source
December 11, 2023
The long struggling shareholders of Macy’s just scored up an early Christmas gift.
Macy’s has gotten a $5.8 billion buying-out proposal from the real estate investor company Arkhouse Management and the asset manager company Brigade Capital Management, a source that is familiar with the matter told Yahoo Finance later on Sunday.
The offer, which is valuing Macy’s $21 per share, was apparently submitted on 1st December. The company board is reportedly mulling the offer.
The WSJ had first reported this news on the offer earlier on Sunday.
Macy’s had, however, declined the request for comment.
The offer price had marked a 32.4 percent premium to the closing price of Macy’s on 30th November.
To be fully sure, the board of Macy’s, which is full of retail veterans like the former CEO of Home Depot, Frank Blake, has a number of things to consider.
As of this Friday’s close, Macy’s shares stood at $17.39.
Furthermore, back in 2022, the investment bank Cowen valued the real estate holdings of Macy’s to be approximately between $6 billion to $8 billion alone.
Macy’s has an extravagant real estate portfolio which is headed by the iconic Herald Square located in New York. Valuations from multiple money managers over this prized real estate asset have ranged somewhat between $3 billion and $4 billion in the past alone.
The company also needs to weigh how disruptive the buyout process could be in 2024.
Macy’s is right in the middle of the shopping season for the holidays, with the results that are to be published by mid or late February. In February 2024, Macy’s will witness the long term executive Tony Sprong take over the position of CEO from Jeff Gennette.
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