Kohl's slaps down takeover offers

Retailer's finance committee will review future expressions of interest

Following a review by independent financial advisers and upon the recommendation of its finance committee, Kohl's has determined that recent takeover offers undervalue the retailer "in light of its future growth and cash flow generation."

Ticker Security Last Change Change %
KSS KOHL'S CORP. 43.19 +2.71 +6.69%

"We have a high degree of confidence in Kohl's transformational strategy, and we expect that its continued execution will result in significant value creation," Kohl’s chairman Frank Sica said in a statement Friday. "The Board is committed to acting in the best interest of shareholders and will continue to closely evaluate any opportunities to create value."

CEDAR FAIR REVIEWING SEAWORLD'S UNSOLICITED OFFER

In January, Kohl's received a $9 billion takeover offer at $64 per share from Starboard Value Group, a group led by Acacia Research Corp. In addition, Sycamore Partners had reached out to Kohl's with plans to offer at least $65 per share, Reuters reported.  

A Kohl's store

Following a review with its independent financial advisors and upon the recommendation of its finance committee, Kohl's has determined that the valuations indicated in recent takeover offers "do not adequately reflect the Company’s value in light of (iStock)

The offers came as two activist investors, Macellum Advisors GP LLC and Enginge Capital, have been urging the company to consider exploring a sale. Macellum has a roughly 5% stake in Kohl's, while Engine has a roughly 1% stake. 

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Kohl's has adopted a limited-duration shareholder rights plan to ensure it can adequately review future expressions of interest, including potential further engagement with interested parties. The plan will expire on Feb. 2, 2023. 

The review process for future expressions of interest is being overseen by the company's finance committee, which is composed exclusively of independent directors. Kohl's is also working with financial advisers Goldman Sachs and PJT Partners and has asked Goldman to engage with interested parties.

Kohl's will update shareholders on its ongoing strategic initiatives and capital allocation plans at its Investor Day on March 7.