Kohl’s, the American clothing retailer, has, reportedly, adopted a shareholder rights plans – also called ‘poison pill.
The move is seen as a part to ward off any hostile takeover of the retailer.
Notably, the shareholder rights plan has come into immediate effect and will expire in next 1 year.
Corroborating on the same, Kohl’s said that following an independent review of two recent unsolicited takeover offers, it becomes distinct that the retailer’s value in light of its future growth and cash flow generation is not reflected adequately.
More updates on ongoing strategic initiatives and capital allocation plans will be presented on 7 March at the shareholders’ meeting.
It is noteworthy that Acacia Research has offered US $ 64 (per share) for Kohl’s, while private equity firm Sycamore Partners has also, reportedly, come up with an undisclosed offer.
However, both haven’t responded to Kohl’s poison pill plan.
Frank Sica, Chairman, Kohl’s said “The board is committed to acting in the best interest of shareholders and will continue to closely evaluate any opportunities to create value.”
Founded in 1962, Kohl’s is majorly known for apparels, footwear, bedding and furniture, amongst others.
