The Coles logo will appear on the exterior of the Coles Store in San Rafael, California on January 24, 2022.
Justin Sullivan | Getty Images
Coles On Monday, it said it had begun exclusive negotiations with a retail holding company franchise group. The franchise group is proposing to buy retailers for $ 60 per share.
Such a price tag would value Coles at around $ 8 billion.
Coles shares closed at $ 42.12 on Monday, giving retailers a market value of approximately $ 5.4 billion.
The franchise group is working with Oak Street Real Estate Capital to fund transactions primarily through real estate, according to those familiar with the matter. Requested anonymity because the transaction was not completed.
A representative of Oak Street Real Estate declined to comment.
This transaction will continue to require the approval of the boards of directors of both companies. Coles Said in a press release.. There is no guarantee that an agreement will be reached, he said.
With a three-week monopoly, the franchise group and its funding partners, which own vitamin shops and buddy’s home furnishings, among other brands, have completed due diligence and funding arrangements, and the parties are binding. You can complete the negotiation of the document. Said.
Retailers added that there would be no further comment until an agreement was reached or the discussion was over.
The story of Coles I play for more than half a year.
The off-mall department store chain was the first In early December 2021, engine capital, a New York-based hedge fund, urged us to consider selling. Or another alternative to raising its stock price. At that time, Cole’s stock was trading at about $ 48.45.
In mid-January, activist hedge fund Macellum Advisors put pressure on Coles. Consider selling.. Macellum CEO Jonathan Duskin argued that executives “substantially mismanaged” their business. He also said Coles had a lot of potential to unleash in the property.
In early February, Coles said it had invited Goldman Sachs and PJT partner bankers to support retailers’ field offers.
last month, Coles reported sales for the three months ended April 30 It decreased from $ 3.89 billion in 2021 to $ 3.72 billion. The company has also significantly reduced its full-year profit and earnings forecasts, disappointing investors and disrupting potential trading prospects.
Coles’ share price reached a 52-week high of $ 64.38 in late January.
