Cars parked in front of the Macy's store at Bay Fair Mall on February 27, 2024 in San Leandro, California.
Justin Sullivan | Getty Images
Arkhouse Management, a real estate-focused investment firm, said Sunday that it and Brigade Capital Management had raised their bid for Macy's after the department store chain rejected their previous proposal as too low.
The companies are now offering to acquire Macy's shares they don't already own for $24 per share, about 14% more than their previous offer of $21 per share.
The company's new offer represents a premium of about 33% over its last close on Friday of $18.01 and values the company at $6.6 billion.
“We continue to offer an attractive alternative solution to the company by selling the company at a significant premium. This would provide Macy's shareholders with significant value and immediate liquidity,” Arkhaus said.
“The Macy's Inc. Board of Directors will carefully review and evaluate the latest proposal,” Macy's said in a separate statement.
The two investment firms had made an offer in December last year to acquire Macy's shares they did not already own for $21 a share, but the offer was rejected by the department store operator due to concerns about the financing and valuation of the deal.
Like other department store operators, Macy's has struggled to compete against younger online rivals or peers with a smaller footprint. This gave Arkhouse and Brigade the opportunity to put pressure on Macy's to explore a sale.
Macy's also faces a board challenge from Arkhouse Management after the investment firm nominated nine director candidates, including executives with experience in retail, real estate and capital markets, to the department store's 14-member board last month.
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