October 22, 2019
Hudson’s Bay Company (HBC) plans to take the company private in a deal involving a group of HBC shareholders that values the retailer at roughly $1.9 billion. Common shares of HBC not held by the HBC shareholder group, who collectively own roughly 57% of Hudson’s Bay’s common shares, will be purchased for C$10.30 per share in cash.
That represents a premium of roughly 62% to HBC’s closing share price on the Toronto Stock Exchange on June 7, 2019. The price also represents an increase of 9% over the HBC shareholder group’s initial proposal earlier this summer of $9.45 per share.
The shareholder group comprises individuals and entities related to, or affiliated with, Richard A. Baker, Governor and Executive Chairman of HBC; Rhône Capital L.L.C.; WeWork Property Advisors; Hanover Investments (Luxembourg) S.A.; and Abrams Capital Management, L.P.
CBRE, Inc. and Cushman & Wakefield Inc., independently valued HBC’s portfolio of 79 assets on an as-is and alternative use basis. Hudson’s Bay determined the pro rata share of its real estate portfolio, which includes Saks Fifth Avenue, is valued at $8.75 per diluted share.
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