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Investing.com– An investor group consisting of Arkhouse Management and Brigade Capital hiked its offer to take department store chain Macy’s Inc (NYSE:M) private on late-Sunday, just months after the firm rejected an earlier offer.
The group is now offering $24 in cash per Macy’s share, up from its earlier offer of $21 per share, it said in a press release on late-Sunday. The offer is a 33% premium to Macy’s close on Friday, and values the chain at about $6.6 billion.
Arkhouse said that the group was open to further increasing the takeover price.
Macy’s said in a press release on Sunday that its board will review the new proposal.
The hiked offer, which represents the group’s second takeover offer after a rejected bid in November, comes shortly after Macy’s announced a major restructuring that will see the firm cut costs, reduce inventory, and close 150 stores over the next three years.
“While the restructuring plan Macy’s 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,” Gavriel Kahane and Jonathon Blackwell, Arkhouse managing partners, said in a press release.
Arkhouse had nominated nine director candidates for Macy’s board after the initial offer was rejected, which saw Macy’s board signal that it was prepared for a proxy fight.
The legacy retailer has been long struggling to retain shoppers amid increasing pressure from shifting consumer trends, particularly away from luxury items and more towards online shopping.
Still, the department store chain surprised investors with a smaller-than-expected decline in its fourth-quarter earnings released last week.
Source: Investing.com
