In a bid to acquire Macy’s, Arkhouse Management and Brigade Capital Management have revised their buyout proposal, escalating the offer to $24 per share, amounting to a total valuation of $6.6 billion.
This revised bid is 14 per cent higher than their previous offer that was initially rejected. The enhanced offer represents a significant premium of about 33 per cent over Macy’s closing stock price on Friday.
“We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity,” Arkhouse Management said in a statement.
Macy’s, in response to the revised proposal, asserted that its Board would meticulously assess and evaluate the latest offer.
The department store operator had previously rejected a similar proposal in December, citing concerns over financing and valuation.
The revised bid aims to address these concerns while emphasising the potential value and benefits of the acquisition to Macy’s shareholders.
The proposed acquisition comes amid Macy’s ongoing struggles to compete in a rapidly evolving retail landscape dominated by online competitors and agile brick-and-mortar counterparts.
Like other legacy department store operators, Macy’s faces challenges in adapting to changing consumer preferences and retail trends.
These challenges have provided Arkhouse and Brigade with an opportunity to exert pressure on Macy’s to consider a sale.
Furthermore, Arkhouse Management has initiated a board challenge against Macy’s, nominating nine director candidates with diverse expertise in retail, real estate, and capital markets.
The nomination of seasoned executives aims to bolster Macy’s board with relevant experience and insights, potentially steering the company towards growth and profitability amid industry headwinds.
(With inputs from Reuters)
