The Catalyst Capital Group has amended its offer to purchase common shares of the Hudson’s Bay Co.
While the per share purchase price offer remains at 10.11 Canadian dollars, the maximum number of shares to be purchased under the offer has increased to 19,782,393, representing about 10.75 percent of the common shares and $200 million in total value.
The original offer, made on July 22, was for 14,836,795 shares representing about 8.06 percent of the outstanding shares issued.
Catalyst said the revised offer is “a significant premium and immediate liquidity” to the bid by Richard Baker and a group of key shareholders to take HBC private by buying up all the shares they don’t own for $9.45.
If Catalyst is successful in its bid, it would effectively block Baker’s privatization bid. Baker and his group together already own 57 percent of the voting shares. For Baker’s bid to succeed, his group must acquire a majority of the remaining 43 percent of the shares.
As reported, a special committee of the board of HBC has deemed Baker’s bid inadequate but also said its review of the offer is ongoing and its valuation of HBC shares won’t be complete until sometime in September.
The special committee also warned shareholders to be cautious regarding the Catalyst bid and Baker has responded saying the Catalyst bid lacks the kind of securities protections for shareholders that his offer provides.