Late this Sunday night Arkhouse and Brigade Capital raised their offer to acquire Macy’s to $24.00 per share, up from their previous offer of $21.00 per share.
In their release Arkhouse and Brigade stated that the offer represents a 51.1 premium on November 30th share price and a 33.3% premium where the company closed on March 1, 2024. It represents an increase of 14.3% from Arkhouse and Brigade’s previous offer.
The release also quotes Gavriel Kahane and Jonathon Blackwell, Arkhouse Managing Partners: “We remain frustrated by the delay tactics adopted by Macy’s Board of Directors (the “Board”) and its continued refusal to engage with our credible buyer group. Nonetheless, we are steadfast in our commitment to execute the transaction in recent months. Macy’s introduced two restructurings and a divided hike. The stock price selloff following these announcements is a strong indication of shareholder concern about maintaining the status quo. We continue to offer the Company an attractive alternative through sale of the Company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity.”
Macy’s response was quick. Macy’s confirmed that it received a revised, unsolicited, non-binding proposal from Arkhouse and Brigade Capital Management and while the Board will carefully review the latest proposal, Macy’s will not comment further on the proposal until the Board has competed the review.
POSTSCRIPT: I salute Macy’s for carefully reviewing this unsolicited offer. Arkhouse and Brigade have not advanced their financial plan for Macy’s Board to disclose any information or to vote for a sale of the company. Macy’s financial advisors are likely to reject this revised offer.
At the same time Macy’s is working on closing 150 stores in the next three years. One of the closures is likely to be the San Francisco store which would be a pity and a reflection on the terrible crime environment in that city.
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