Longtime Macy's (M) shareholders just received an early Christmas present.
Macy's has received a $5.8 billion takeover 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 considering the offer.
The WSJ first reported news of the offer on Sunday.
Macy's declined to comment to Yahoo Finance.
While the offering price represents a 22% premium to Macy's closing market cap as of Dec. 8, Macy's board has a lot to consider.
First of all, Macy's stock price reached $70.99 on June 15, 2015, according to data from Yahoo Finance. The reported offer values Macy's at approximately $21 per share.
As of Friday's close, shares of Macy's were changing hands at $17.39.
Meanwhile, investment bank Cowen estimated the value of Macy's real estate holdings alone at $6 billion to $8 billion in 2022.
Macy's has a valuable real estate portfolio, most notably its iconic Herald Square location in New York City. In the last decade alone, various asset managers' valuations for the coveted real estate asset have ranged between $3 billion and $4 billion.
The company also needs to consider how disruptive a takeover process could be by 2024.
Macy's is in the middle of its holiday shopping season and will report results in mid- to late February. In February 2024, longtime Macy's executive Tony Spring will succeed CEO Jeff Gennette, who is retiring.
Brian Sozzi is Editor-in-Chief of Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].
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