Kohl’s Soars on Report Sycamore, Hudson Plan $9 Billion Offer By Investing.com
© Reuters. By Dhirendra Tripathi
Investing.com – Kohl’s stock (NYSE:) surged 14% Wednesday after The Wall Street Journal said Sycamore Partners and Canadian department store chain Hudson’s Bay plan to submit takeover bids that value the retailer at above $9 billion.
The private-equity firm and Hudson (NYSE:)’s plan a bid in the high $60s for each share though Kohl’s is looking at over $70 as a fair value, according to the Journal. The report said the company has asked the suitors to submit offers by end of day. The shares touched a high of $63 in today’s session so far.
According to WSJ, Starboard Value had offered $64 per share or $9 billion in January, which Kohl’s found too low.
The retailer has been under pressure from activist investors to consider a sale and unlock value of its real estate. One such investor, hedge fund Engine Capital which owns around 1% of the company, has been urging the department store chain to consider separation of its faster growing e-commerce business.
Oak Street Real Estate Capital has been named as a possible bidder for Kohl’s real estate.
On March 7, Kohl’s unveiled its long-term growth plans. The company said it plans to grow sales by a low-single-digit percentage annually and make Sephora a $2 billion annual sales business.
‘Sephora at Kohl’s’ stores is an attempt to position the company as a beauty destination. The company plans to have 850 of these stores within a store by 2023.
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