Hudson’s Bay Weighs Going Private Offer

A special committee of the board of directors of Hudson’s Bay Company has issued an update on its ongoing review of the June 10 proposal for the privatization of the company from a group of HBC shareholders, including HBC’s governor and executive chairman, at a price of $9.45 per share in cash.

Consistent with its obligation to act in the best interest of the company and all of its shareholders, and in consultation with its independent financial and legal advisors, the special committee said it is evaluating this proposal along with other strategic alternatives.

As part of this process, the special committee has invited a number of shareholders to share their views regarding the privatization proposal directly with the special committee and its financial advisors in the coming weeks.

The special committee also acknowledges an unsolicited offer and letter to HBC shareholders by The Catalyst Capital Group to acquire up to 14,836,795 common shares of the company for $10.11 per common share in cash. The committee will consider this development in conjunction with its ongoing review.

The Special Committee has retained TD Securities Inc. as independent valuator to prepare a formal valuation of the common shares of the company. The committee has also retained J.P. Morgan Securities as financial advisor, Centerview Partners LLC as special advisor, and Blake, Cassels & Graydon LLP as legal counsel to assist in the process. It has also engaged real estate appraisal firms and planning consultants to assist the committee, its advisors and TD Securities Inc. with valuing HBC’s real estate assets.