Long-suffering Macy’s (M) shareholders got an early Christmas present.
Macy’s has received a $5.8 billion buyout offer from real estate investor Arkhouse Management and asset manager Brigade Capital Management, a source familiar with the matter told Yahoo Finance late Sunday. The offer — which values Macy’s at about $21 per share — was made on December 1. The company’s board of directors is studying the offer.
The Wall Street Journal was first to report news of the offer earlier Sunday.
Macy’s declined to comment to Yahoo Finance.
The offer price represents a 32.4% premium to Macy’s closing price on November 30.
Macy’s board — led by a mix of retail experts like former Home Depot CEO Frank Blake — certainly has a lot to consider.
For starters, the highest Macy’s stock price ever was $70.99, which was set on June 15, 2015, according to Yahoo Finance data.
As of Friday’s close, Macy’s shares were trading at $17.39.
Meanwhile, investment bank Coin has just returned in 2022 value The value of Messi’s real estate holdings ranges between $6 billion and $8 billion only.
Macy’s owns a valuable real estate portfolio, most notably its iconic Herald Square location in New York City. Valuations from various money managers on major real estate assets have ranged between $3 billion to $4 billion just in the past decade.
The company must also consider how disruptive the acquisition could be to 2024.
Macy’s is in the middle of the holiday shopping season, with results released in mid-to-late February. In February 2024, Macy’s will see longtime executive Tony Spring take over the CEO role from the retiring Jeff Gennette.
Brian Susie He is the executive editor of Yahoo Finance. Follow Susie on Twitter @Brian Susie and on LinkedIn. Advice on deals, mergers, activist positions, or anything else? Email [email protected].
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