Boston, MA 08/25/2014 (wallstreetpr) – The Activist Investor Engine Capital LP and its partners that own over 1% of Ann Inc (NYSE:ANN)’s shares, wants Ann to sell itself. Sources having knowledge with the matter reported that the selling of women’s apparel retailer, Ann, can bring $2.5 billion.
According to the Journal report posted by Wall Street Journal, a private equity buyer can offer $50 to $55 on every share for the U.S. based Ann Inc (NYSE:ANN). People conversant with the matter said that the proposed rate is almost 47% more than the closing price of Friday i.e. $37.52.
Store’s Sales Drop 2.3% In 2Q:
The parent of Loft and Ann Taylor brands, Ann Inc (NYSE:ANN), a week ago, posted 2.3% decline in the stores sale in 2Q financial report. The fall in the sales margin was due to low traffic in the Loft chain, reported the company. However, in the 3Q, the company expects almost same sales figure.
Company Unable To Gain Momentum:
The investors controlling 1% of Ann’s stock have been in discussion with the management for a long time regarding the launch of public campaign. The investors highlighted that the company can gain the pace in the market. However, the women apparels company Ann, in a statement, mentioned that it is open to having a discussion with the valuable shareholders. Also, the company’s management and board team are committed to creating values for the shareholders.
Golden Gate: Ann’s Stocks Considerably Undervalued:
During the beginning of this year, private-equity firms, Golden Gate Capital revealed almost 9.5% stake in Ann Inc (NYSE:ANN), the company with market capitalization of $1.8 billion. Golden Gate commented that Ann’s stock was considerably undervalued. Due to lower traffic, the company has lowered its fiscal 2014 expected sales from $2.61 billion to $2.56 billion.
