Hudson’s Bay Company postpones its special shareholders’ meeting ahead of privatisation

New York - Hudson’s Bay Company (TSX: HBC) announced Monday that it has postponed its special meeting of shareholders called to consider the agreement they entered into with Rupert Acquisition LLC on October 20, 2019 pursuant to which HBC will become a private company.

If approved, this arrangement would see the retail conglomerate turned into a private company owned by certain continuing shareholders. The special meeting of shareholders had been scheduled for December 17, 2019, with Hudson’s Bay Company (HBC) now advancing they “intend to schedule a new date for the postponed special meeting of shareholders as soon as practicable, and to provide shareholders with an amended Management Information Circular that will contain additional information that the Ontario Securities Commission requires to be included in the circular. The amended Management Information Circular will also contain information on amended dates for proper submission of proxy voting instructions and dissent elections.”

It’s worth recalling that the Hudson's Bay Co. board agreed last October to a privatisation offer that values the retailer at about 1.9 billion dollars, but the deal will require support from minority shareholders if it is to be accepted.

The board said a group of shareholders led by HBC executive chairman Richard Baker, which currently holds about a 57 percent stake in the retailer, has agreed to pay 10.30 dollars per share in cash to take HBC private. Noteworthy, the final bid is 9 percent higher than an earlier offer of 9.45 dollars per share by the group, following objections from Toronto-based Catalyst Capital and Land & Buildings Investment Management of Stamford, Connecticut.