According to a report from the Wall Street Journal, U.S.-based activist investor Engine Capital LP is pushing Kohl’s Corp to divest its e-commerce business.

The hedge fund, which has close to 1% stake in Kohl’s, wants the department store chain to examine the two alternatives to improve its lagging stock price, said the report citing a letter sent to Kohl’s board.

Engine Capital has based its arguments on Kohl’s underperformance in the S&P 500 vis-à-vis its peers.

Assuming revenue from online sales at around $6.2 billion, Engine Capital estimates that Kohl’s digital business alone would be worth around $12.4 billion. In a letter cited by WSJ, Engine Capital said, it believes there are private-equity firms that would pay at least $75 a share and that interactions with potential buyers suggest they could do so by monetizing Kohl’s real estate.

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Tags: activist investor, department stores, digital business, divest, divestiture, e-commerce, Engine Capital LP, Kohl's, Kohl's Corp, monetize, private equity, real estate, underperformance