Hudson’s Bay Company (HBC), the owner of New York department store Saks Fifth Avenue, has agreed to be bought by a group of investors led by its executive chairman.
The investor consortium led by Richard Baker, who currently owns 6.32 per cent of the firm, has made an offer to buy the shares of HBC that it does not already own for $10.30 each.
The offer is a premium of about nine per cent on the company’s closing price on Friday.
The group of investors also includes Rhone Capital, Wework Property Advisors, Hanover Investments and Abrams Capital Management.
A special committee established to consider options for the Canadian retail group’s future said the offer represented good value for minority shareholders in a “deteriorating retail environment”.
In June the panel turned down a previous offer by the consortium of $9.45 per share, saying the bid was “inadequate”.
Special committee chairman David Leith said today: “Over the last four months, with the assistance of our independent financial and legal advisors, we have conducted a thorough evaluation of the shareholder group’s proposal and alternatives available to HBC to maximise shareholder value…The special committee is confident that this transaction represents the best path forward for HBC and the minority shareholders.”
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