Hudson’s Bay Company agrees to takeover bid from Baker-led group

Hudson’s Bay Company (HBC) has announced that, it has entered into a definitive arrangement agreement with a group of HBC shareholders backed by Executive Chairman Richard Baker, to take the Company private. The company said in a statement that the shareholder group, who collectively owns approximately 57 percent of the common shares, will be purchased for cancellation at a price of 10.30 Canadian dollars per share in cash.

Commenting on the development, David Leith, Chair of the special committee, said: “Following this comprehensive evaluation and extensive negotiations with the shareholder group, and consideration of the applicable risks and the opportunities and alternatives available, we are pleased to have reached an agreement with respect to a transaction that provides immediate and fair value to the minority shareholders. The special committee is confident that this transaction represents the best path forward for HBC and the minority shareholders.”

HBC agrees to be taken private

The company further said that this price represents a premium of approximately 62 percent to HBC’s closing share price on the Toronto Stock Exchange on June 7, 2019, the last trading day prior to the announcement of the shareholder group’s initial privatization proposal, and a premium of approximately 52 percent to the 20-day average closing share price on that date. The price also represents an increase of 9 percent over the shareholder group’s initial proposal on June 10, 2019 of 9.45 Canadian dollars per share.

The shareholder group comprises individuals and entities related or affiliated with, Richard A. Baker, Governor and Executive Chairman of HBC; Rhône Capital L.L.C.; WeWork Property Advisors; Hanover Investments (Luxembourg) S.A.; and Abrams Capital Management, L.P.

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