The US retailer Kohl’s Corporation is about to be taken over by Franchise Group Inc. After receiving a final offer, the board of directors approved exclusive negotiations with the prospective buyer, Kohl’s announced on Monday evening.
The negotiation period is limited to three weeks and should enable the bidder and its investment partners to complete the audit and the financing concept, according to a statement. In addition, the parties involved could complete the work on a binding contract during this time. The prerequisite for the completion of the intended takeover, however, is that the boards of directors of both companies agree to the final agreement, the retailer explained.
The franchise group is offering $60.00 for each Kohl’s share. The market value of the retailer is estimated at a total of almost eight billion US dollars in the context of the planned transaction. Should the sale take place, Kohl’s previous shareholders could look forward to a hefty premium: On Monday evening, the company’s share price was only around 42 US dollars.
The offer now available is the result of a takeover gamble that has been going on for months, in which, according to press reports, the investment house Sycamore Partners and a consortium made up of the Simon Property Group and Brookfield Asset Management were also involved.