Kohl’s Corp e-commerce business worth $12.4 billion: Engine Capital LP

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.



Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: