Canadian department store group Hudson's Bay is being delisted from the stock market: a group of shareholders is prepared to pay seven euros per share to take the group into its own hands.
Special Committee reaches deal
This is the best solution for the company, according to the unanimous decision of a Special Committee appointed by the Board of Directors. "We are confident that this transaction represents the best path forward for HBC and the Minority Shareholders", Chair of the Special Committee, David Leith, said.
After four months of consultation, an agreement has been reached over whether to delist Hudson's Bay and the associated acquisition price. A group of current shareholders, including several members of the board of directors and chair Richard Baker, want to pay 10.3 Canadian dollars per share for the group, which is 62 % more than the recent share price, thereby valuing the department store group at 1.9 billion Canadian dollars (1.3 billion euros).
The special committee argues that this is the best option because the company is in urgent need of cash as a result of the closure of all its Dutch stores. The committee also stressed that, in view of the worsening retail climate, the value of Hudson's Bay's real estate may deteriorate in the future, and that share prices may also continue to plummet.
In order to formalise the deal, a special meeting of shareholders is planned soon, where all minority shareholders will be able to cast their votes. Leith's appeal to investors to take the bailout and, in view of the gloomy outlook, to abandon the ship as soon as possible, is not overly optimistic.