Simon Property Group and Brookfield Asset Management are offering to acquire Kohl’s Corp. in a deal that would be worth more than $8.6 billion, according to a report in the New York Post.
Simon and Brookfield, which bought rival department-store chain JCPenney out of bankruptcy, have offered $68 a share, according to people with knowledge of the talks, which the NY Post did not identify. The report also said that Simon Property and Brookfield Asset Management would help Kohl’s reduce $1 billion worth of expenses over three years while still being run under Kohl’s banner.
Last month, Kohl’s said it had received “multiple preliminary indications of interest.” It has hired Goldman Sachs to engage with potential bidders.
Macellum Advisors, which owns nearly 5 percent of shares at Kohl’s and is seeking to overhaul the retailer’s board with its candidates, has encouraged Kohl’s to consider taking an offer to sell its business.
On April 12, Reuters reported that Kohl’s had received a takeover bid from Franchise Group, the owner and operator of retail chains, including The Vitamin Shoppe, Buddy’s Home Furnishings, and Pet Supplies Plus offering $9 billion, or $69 a share.
Hudson’s Bay Company has reportedly indicated it is willing to pay at least $70 per share for Kohl’s. Others are reportedly making bids, including private equity firm Sycamore Partners, Acacia Research Corp. and a group including private equity firm Leonard Green & Partners LP, which includes Authentic Brands.
Photo courtesy JCPenney
