- Angela Gonzalez-Rodriguez
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New York – Hudson’s Bay Company (TSX: HBC) announced Monday that it has
postponed its special meeting of shareholders called to consider the
agreement they entered into with Rupert Acquisition LLC on October 20, 2019
pursuant to which HBC will become a private company.
If approved, this arrangement would see the retail conglomerate turned
into a private company owned by certain continuing shareholders. The
special meeting of shareholders had been scheduled for December 17, 2019,
with Hudson’s Bay Company (HBC) now advancing they “intend to schedule a
new date for the postponed special meeting of shareholders as soon as
practicable, and to provide shareholders with an amended Management
Information Circular that will contain additional information that the
Ontario Securities Commission requires to be included in the circular. The
amended Management Information Circular will also contain information on
amended dates for proper submission of proxy voting instructions and
dissent elections.”
It’s worth recalling that the Hudson’s Bay Co. board agreed last October
to a privatisation offer that values the retailer at about 1.9 billion
dollars, but the deal will require support from minority shareholders if it
is to be accepted.
The board said a group of shareholders led by HBC executive chairman
Richard Baker, which currently holds about a 57 percent stake in the
retailer, has agreed to pay 10.30 dollars per share in cash to take HBC
private. Noteworthy, the final bid is 9 percent higher than an earlier
offer of 9.45 dollars per share by the group, following objections from
Toronto-based Catalyst Capital and Land & Buildings Investment Management
of Stamford, Connecticut.
