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Engine Capital urges Kohl’s to consider e-commerce separation

by Mike Robinson

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© Reuters. FILE PHOTO : A screen is used to display the logo and other trading information for Kohl’s on the New York Stock Exchange floor in New York (USA), January 13, 2020. REUTERS/Brendan McDermid

(Reuters] – U.S.-based Hedge Fund Engine Capital LP urges Kohl’s Corp. (NYSE:) that it considers a sale or a seperation of its ecommerce businesses, The Wall Street Journal reported.

An activist investor holding a fraction of Kohl’s stock wants Kohl’s department store chain to investigate the alternatives in order to boost its stock prices. The report cited a Sunday letter to Kohl’s board.

Engine argues that the company has underperformed both the and other retailers in recent years, the report said https://on.wsj.com/3yapXCV.

Reuters asked Kohl and Engine Capital for comments but did not receive any response.

According to the newspaper’s letter, an activist investor stated that Kohl’s digital business, assuming $6.2 million in online sales, would make it worth $12.4 billion.

Engine stated that it also believes that there are private equity firms willing to pay $75 per share, and that its interactions with potential buyers indicate that they might be able to do so through monetization of Kohl’s real property.

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