Richard Baker

Richard Baker is looking to take Hudson’s Bay Co. private.

Baker, executive chairman and governor of HBC, along with other shareholders representing about 57 percent of the common shares of HBC, have submitted a proposal to take the company private at a price of 9.45 Canadian dollars per share, payable in cash. The deal would value HBC’s stock at 1.7 billion Canadian dollars, or $1.28 billion.

Others in the group include Rhône Capital LLC; WeWork Property Advisors; Hanover Investments (Luxembourg) S.A.; and Abrams Capital Management LP.

In other news, HBC is pulling out of Europe by agreeing to sell the company’s remaining stake in its German real estate joint venture, and divest its related retail joint venture to its partner, SIGNA, along with assumption of certain obligations for a total consideration of 1.5 billion Canadian dollars, or 1 billion euros.

HBC said a portion of the transaction will be used to strengthen HBC’s balance sheet by fully repaying its outstanding $436 million term loan. Upon close, HBC will completely exit its German operations.

HBC’s board announced that its board of directors formed a special committee of independent directors to review the privatization proposal at 9.45 Canadian dollars per share. The stock closed at 6.37 Canadian dollars on Friday.