Richard Baker and his group of key Hudson Bay Co. shareholders have moved another step toward taking the retailer private.
A special committee of HBC’s board has approved the latest offer by Baker and his group, which collectively own 57 percent of the company, to purchase the remaining 43 percent of the shares for $10.30 per share in cash in Canadian dollars, or $7.86 U.S.
Baker and his group would be purchasing 100 million shares, bringing the cost for the remaining minority stake to 1.03 billion in Canadian dollars. That would value the whole of HBC, operator of Saks Fifth Avenue and Saks Off Fifth in the U.S. and Hudson’s Bay department stores in Canada, at approximately $2.5 billion Canadian.
All subsequent currencies are in Canadian dollars.
The $10.30 offer 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 of $9.45.
It represents a premium of about 52 percent to the 20-day average closing share price on that date, and an increase of 9 percent over Baker’s initial $9.45.
After the announcement Monday, HBC’s stock in Canada rose 7
A special committee of HBC’s board has approved the latest offer by Baker and his group, which collectively own 57 percent of the company, to purchase the remaining 43 percent of the shares for $10.30 per share in cash in Canadian dollars, or $7.86 U.S.
Baker and his group would be purchasing 100 million shares, bringing the cost for the remaining minority stake to 1.03 billion in Canadian dollars. That would value the whole of HBC, operator of Saks Fifth Avenue and Saks Off Fifth in the U.S. and Hudson’s Bay department stores in Canada, at approximately $2.5 billion Canadian.
All subsequent currencies are in Canadian dollars.
The $10.30 offer 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 of $9.45.
It represents a premium of about 52 percent to the 20-day average closing share price on that date, and an increase of 9 percent over Baker’s initial $9.45.
After the announcement Monday, HBC’s stock in Canada rose 7