- Indigo Books & Music (TSX:IDG) stock rallied sharply higher on Wednesday after news that it has agreed to be taken private
- The bookstore chain has agreed to allow Trilogy Investments L.P. and Trilogy Retail Holdings Inc. to acquire all of its issued and outstanding common shares for C$2.50 in cash per share
- This represents a 69 per cent premium to Indigo’s closing price of C$1.48 per share on the TSX on Feb. 1. Trilogy and its affiliates already own 60.6 per cent of Indigo’s shares
- Shares of Indigo Books & Music opened trading at C$2.46
Indigo Books & Music (TSX:IDG) stock rallied sharply higher on Wednesday after news that it had agreed to be taken private.
The bookstore chain has agreed to allow Trilogy Investments L.P. and Trilogy Retail Holdings Inc. to acquire all of its issued and outstanding common shares for C$2.50 in cash per share. This represents a 69 per cent premium to Indigo’s closing price of C$1.48 per share on the TSX on Feb. 1. Trilogy and its affiliates already own 60.6 per cent of Indigo’s shares.
The last time Indigo stock jumped this high was back in February when Trilogy made its non-binding proposal public. This followed a series of events that shook the public’s faith in the company, from significant layoffs to a crippling cyberattack and abrupt leadership changes, including the surprising return of chief executive officer Heather Reisman, wife of board member Gerald W. Schwartz, the founder of Onex Corp., and majority controller of the company’s shares via Trilogy. The move was unanimously supported by Indigo’s independent committee of its board of directors.
Indigo is Canada’s leading book and lifestyle retailer. It operates under the Indigo, Chapters, Coles and IndigoSpirit brands.
Shares of Indigo Books & Music (TSX:IDG) opened trading nearly 22 per cent higher at C$2.46. The stock is flat year-over-year, and has lost a little more than 75 per cent since 2019.
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