The Hudson’s Bay Co. has entered into an agreement with a group of shareholders to take the company private at 10.30 Canadian dollars a share.
The agreement is based on the recommendation of an independent special committee of the board of directors following a review of the privatization bid by a group of key shareholders, including HBC’s chairman and governor Richard Baker, representing 57 percent of the common shares of the Toronto-based company.
The 10.30 Canadian dollar price represents a premium of about 62 percent to HBC’s closing price on the Toronto Stock Exchange on June 7, the last trading prior to the announcement of the shareholder group’s initial offer, and a premium of 52 percent to the 20-day average closing price on that date.
The shareholder group representing 57 percent of the company’s shares also includes Rhône Capital, WeWork Property Advisors, Hanover Investments and Abrams Capital Management. The deal requires the approval of a majority of the minority shareholders who own the remaining 43 percent of HBC.
For more from WWD, see:
WATCH: Inside Nordstrom’s New NYC Flagship