Hudson's Bay Reaches Deal to be Taken Private

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Hudson's Bay Reaches Deal to be Taken Private


Hudson’s Bay Company has entered into an agreement with a group of existing shareholders under which the HBC common shares held by the retailer’s other shareholders will be acquired by HBC for $11.00 in cash per share. The agreement is the result of an ongoing negotiation between shareholders and the company, as the retailer looks to go private.

HBC and the continuing shareholders have also entered into a voting and support agreement with The Catalyst Capital Group, HBC’s largest minority shareholder, under which Catalyst has agreed to vote the 32,236,878 common shares it controls in favor of the privatization transaction.

"We are pleased to have reached agreement with the continuing shareholders for a privatization transaction at a substantially increased price, which provides minority shareholders with compelling and immediate value and is supported by our largest minority shareholder,” said David Leith, chair of the special committee of the HBC Board of Directors. “, said, I would like to commend Catalyst on their constructive approach to getting a transaction agreed which we believe is in the best interests of the Company and the Minority Shareholders."

HBC intends to hold the special meeting of shareholders to approve the privatization transaction in February. The transaction requires the approval at the special meeting of at least 75% of the votes cast by shareholders, and a simple majority of the votes cast by common shareholders.