- Hudson’s Bay Company (TSX:HBC) has completed its plan of arrangement and will now become privately-held
- Under the terms of the plan, the company will purchase and cancel all outstanding shares for C$11.00 each
- In an announcement, Hudson’s Bay revealed that over 98 per cent of voting shareholders voted in favour of privatisation
- Helena Foulkes will step down as CEO, effective March 13, and Executive Chairman, Richard Baker, will take over
- Hudson’s Bay shares are currently trading at $10.99, and will delist from the TSX at close of trading on March 4
Hudson’s Bay Company (TSX:HBC) has completed its plan of arrangement and will now become privately-held.
The decision to privatise the company was first floated in mid-2019. Over 98 per cent of voting shareholders voted for the transaction. As a result, Hudson’s Bay will officially delist at the close of trading on March 4.
According to the terms of the plan, the company has purchased all of its common shares at C$11.00 each.
A select group of continuing shareholders will be exempt from the buyout, and will maintain their stake in Hudson’s Bay.
Collectively, they represent 57 per cent of the company. The continuing shareholders are Rhone Capital LLC, WeWork Property Advisors, Hanover Investments SA and Abrams Capital Management.
Richard Baker, Governor and Executive Chairman of Hudson’s Bay, said that the deal is a great outcome for all stakeholders.
“The continuing shareholder group is resolved to doing what is right for our customers, associates, communities and partners.
“As current and future generations change the way they live, shop and work, we are committed to transforming HBC to capitalize on these shifts.”
Baker will replace the company’s existing CEO, Helena Foulkes, effective March 13.
“The company and I are grateful for Helena’s leadership and significant accomplishments over the last two years.
“Each of our businesses is well positioned to take advantage of opportunities in their unique markets and we are optimistic about this exciting next chapter for our company,” Baker concluded.
Hudson’s Bay has not made any specific information public as to the reason for the privatisation.
Shares in the company are currently trading at $10.99, with a market cap of $2.03 billion at 3:23 pm EST.