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.
READ MORE: Hudson’s Bay Company to sell Lord and Taylor to Le Tote for nearly $100M
Read next: Inside the luxurious $60K Grammy gift bags: Robot dogs and liposuction
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.
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.
READ MORE: Hudson’s Bay to shutter last 2 Zellers stores in Toronto, Ottawa
Read next: Turkey earthquake: Trudeau says Canada ready to help after thousands killed across region
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.
Comments