The long suffering shareholders of Macy’s (M) just scored an early Christmas gift.
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 company’s board is mulling the offer.
The WSJ first reported reported news on the offer earlier Sunday.
Macy’s declined to comment to Yahoo Finance.
While the offer price marks a 22% premium to Macy’s closing market cap on Dec. 8, Macy’s board has a lot to consider.
For starters, Macy’s all-time high stock price was $70.99 hit on June 15, 2015, according Yahoo Finance data. The reported offer values Macy’s at about $21 a share.
As of Friday’s close, Macy’s shares changed hands at $17.39.
Meantime, just back in 2022 investment bank Cowen valued Macy’s real estate holdings to be worth in a range of $6 billion to $8 billion alone.
Macy’s has a prized real estate portfolio, headlined by its iconic Herald Square location in New York City. Valuations from various money managers on the trophy real estate asset have ranged between $3 billion to $4 billion alone in the past decade.
The company must also weigh how disruptive a buyout process could be into 2024.
Macy’s is smack in the middle of the holiday shopping season, with results to be published in mid to late February. In Feb. 2024, Macy’s will see long-time exec Tony Spring take over as CEO from the retiring Jeff Gennette.
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
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