Kohl's (KSS) Stock Tick Higher as Activist Investor Engine Capital Urges Board to Consider Sale

December 6, 2021 5:42 AM EST

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Engine Capital, the US hedge fund and an activist investor, is pushing Kohl’s (NYSE: KSS) management to consider a sale of the company or divest its e-commerce business, according to the Wall Street Journal.

The hedge fund, which owns around 1% of Kohl’s shares, sent a letter to the board yesterday to note a stock underperformance in recent years.

While Kohl’s has a market cap of $7.29 billion based on Friday’s closing price, Engine Capital claims the company’s online business could be worth over $12 billion alone. Therefore, private equity firms would be interested to acquire KSS and pay at least $75 per share to acquire the company, the DJ report added.

KSS stock closed at $48.45 yesterday.

Kohl’s has taken steps in recent months to increase shareholder value by reinstating a dividend and hiking the share repurchase program. The company reported higher-than-expected numbers for the November quarter and raised its outlook.

KSS stock is up 25% YTD.

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