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Hudson’s Bay Company agrees to sweetened takeover bid by Baker group

The board of Hudson's Bay Co. has agreed to a sweetened takeover offer by a shareholder group led by executive chairman Richard Baker. A photograph the downtown Toronto flagship Hudson Bay Company store in Toronto on Monday, Jan. 27, 2014. THE CANADIAN PRESS/Nathan Denette.
The board of Hudson's Bay Co. has agreed to a sweetened takeover offer by a shareholder group led by executive chairman Richard Baker. A photograph the downtown Toronto flagship Hudson Bay Company store in Toronto on Monday, Jan. 27, 2014. THE CANADIAN PRESS/Nathan Denette.

The board of Hudson’s Bay Co. has agreed to a sweetened offer by a shareholder group led by executive chairman Richard Baker.

The retailer says the group has agreed to pay $10.30 per share in cash to take HBC private. The bid is up from an earlier offer of $9.45 per share.

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The agreement values HBC at about $1.9 billion.

HBC says the price offered represents a premium of 62 per cent compared with where its shares were trading before the shareholder group’s initial privatization proposal in the summer.

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The Baker-led group holds a 57 per cent stake in the retailer and includes Rhone Capital, WeWork Property Advisors, Hanover Investments (Luxembourg) and Abrams Capital Management.

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The deal is subject to the approval by a majority of the minority of HBC shareholders, excluding the shareholder group and its affiliates, and approval by a 75 per cent majority vote at a special meeting of shareholders.