Image source: At Home Group
The largest shareholder of At Home Group (NYSE: HOME) plans to oppose a deal to take the home décor chain private because it believes the sale price is too low, according to The Wall Street Journal.
In a letter sent Sunday to the board of directors, CAS Investment Partners – which owns around 17% of At Home’s shares – wrote that it plans to vote against a $2.4 billion proposed sale to private equity firm Hellman & Friedman.
On May 6, Plano, Texas-based At Home announced that it had agreed to sell itself for $36 per share, but said the deal included a 40-day “go shop” period while giving Hellman & Friedman a chance to match any competing bids that are made.
On Sunday, CAS said the deal “grossly undervalues the company and deprives stockholders of anything resembling a fair premium” and suggested that a price above $70 a share is more realistic based on its projections.
It also said it is prepared to try and block the deal, which requires signoff from a majority of At Home’s shareholders.
With people spending more time at home due to pandemic-related restrictions, demand for décor and furnishings has been on the rise, giving a boost to retailers such as At Home and Wayfair Inc, Reuters noted.
In the fourth quarter of its fiscal year ending Jan. 30, the 200-store chain posted record net income of $72.7 million on net sales of $562 million.
Source: Equities News