Hudson’s Bay Company’s shareholders voted overwhelmingly in favor of a plan to become a private company at a special meeting of shareholders.
Shareholders approved the resolution with 98.28% of the votes cast at the meeting being voted in favor of the plan, surpassing the required favorable vote of at least 75%. The special resolution also required approval by a “majority of the minority” shareholders and 94.46% of the votes cast by minority shareholders were voted in favor of the resolution.
Under the plan, HBC will become a private company owned by a group of continuing shareholders led by Richard Baker, governor and executive chairman of HBC. The company’s other shareholders will receive $11.00 per share in cash.
The completion of the arrangement is subject to the satisfaction or waiver of customary closing conditions, including the approval and issuance of a final order by the Ontario Superior Court of Justice. HBC will be seeking a final order from the court on February 28 and, assuming all other closing conditions are satisfied, the arrangement is expected to be completed on or around March 3, 2020. Following completion of the arrangement, it is anticipated that the common shares of the company will be delisted from the Toronto Stock Exchange and the company will apply to cease to be a reporting issuer under applicable Canadian securities laws.