2024-04-10 09:17:41 ET
Macy’s Inc (NYSE: M) is trending down at writing after announcing to have settled its proxy fight with Arkhouse Management.
Here’s what it means for
The department store chain has agreed to add two new directors to its board.
Ric Clark and Rick Markee – both nominated by Arkhouse will assume the role immediately as is “open-minded about the best path to create shareholder value”.
Macy’s has also allowed the activist group led by Arkhouse Management to access confidential business information amidst negotiations over a possible sale, it added on Wednesday.
The news arrives more than a month after the retail company came in slightly short of revenue estimates for its fourth financial quarter ( read more ). Macy’s stock is now down 10% versus its year-to-date high.
Arkhouse wants to buy Macy’s
Settling with Arkhouse is an indication that Macy’s may be moving closer to going private – something that the activist investor first proposed in 2023.
It has raised its offer several times ever since.
Watch here: https://www.youtube.com/embed/MGnnX78LDrM?feature=oembedUltimately, Arkhouse opted for a proxy fight with the New York listed name in February. The two new directors on the retailer’s board, as per the investment firm, will “ensure that our discussions continue to be constructive and that our proposal is treated seriously and expeditiously”.
Macy’s expects its revenue to fall between $22.2 billion and $22.9 billion in fiscal 2024 – down from $23.1 billion last year. Wall Street currently has a consensus “hold” rating on that pays a dividend yield of 3.53% at writing.
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