US Department Store Chain Kohl's Stock Soars 9.5% Amid $8 Billion Sale Negotiations

[Asia Economy New York=Special Correspondent Joselgina] U.S. department store chain Kohl's has entered exclusive sale negotiations with Franchise Group valued at $8 billion, the Wall Street Journal (WSJ) reported on the 6th (local time).

According to the report, Franchise Group, a retail holding company owning brands such as Vitamin Shoppe, offered Kohl's a purchase price of $60 per share. This price includes a premium of about $2.6 billion based on Kohl's closing price of $42.12 the previous day. Based on this, Kohl's company value is estimated at $8 billion.

Kohl's has been pursuing a sale since the end of last year. It had previously offered investors at least $70 per share, but due to growing concerns over retail companies' performance outlooks, negotiations are reportedly taking place at a lower amount than initially expected. Franchise Group will conduct due diligence and negotiate acquisition terms over the next three weeks. However, both sides confirmed that no agreement has been reached yet.

On the 7th, Kohl's closed up 9.54% compared to the previous session on the New York Stock Exchange following the sale negotiation news.

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