Best Buyfounder and former chairman Richard Schulze offered to take the struggling retailer private for $24 to $26 a share in cash, or about $8.6 billion.
Reed Saxon
Best Buy
The offer represents a premium of 36 percent to 47 percent to Best Buy's closing stock price of $17.64 on Friday.
Schulze is Best Buy’s largest shareholder, holding 20.1 percent of the company's shares.
In a statement, Schulze said he plans to finance the proposed acquisition through a combination of investments from the private-equity firms, reinvestment of approximately $1 billion of his own equity, and debt financing. Credit Suisse, Schulze’s financial advisor, said it is confident it can arrange the debt financing.
Schulze said he has also held discussions with former Best Buy CEO Brad Anderson, and former President and COO Allen Lenzmeier, about rejoining the company.
In a statement, Schulze said, “There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways. After assessing all of my options, it is my strong belief that Best Buy's best chance for renewed success is to implement with urgency the necessary changes as a private company.”
Best Buy confirmed Monday that its board of directors had received the “unsolicited, highly conditional” offer.
"Best Buy’s board of directors will review and consider the letter in due course, consistent with its fiduciary duties, in consultation with its financial advisors, Goldman Sachs and JPMorgan and its legal advisor, Simpson Thacher & Bartlett,” the company's board said in a statement. “Best Buy said that its Board of Directors will evaluate this proposal carefully and will, as always, pursue the best course for its shareholders.”
In pre-market trading, Best Buy shares jumped more than 20 percent on the news.