Tags: hudson. bay | saks | private

Hudson's Bay to Sell Europe Assets as Take-Private Bid Launched

Hudson's Bay to Sell Europe Assets as Take-Private Bid Launched
 J P | Dreamstime.com

Monday, 10 June 2019 03:36 PM

Hudson’s Bay Co. is selling its European operations for C$1.5 billion as a group of investors led by Chairman Richard Baker looks to take the retailer private with a cash bid valued at about C$1.74 billion. The shares surged to near the offer price before paring some gains.

  • Baker and investors including WeWork Property are offering C$9.45 a share for the remaining stock of Hudson’s Bay. The shareholder group owns about 57% of the outstanding common shares of HBC. The offer represents a 48% premium to the retailer’s closing share price on Friday, the investors said in a statement.
  • Separately, the company said it had reached an agreement for partner Signa Holding GmBH to take over the companies’ German real estate and retail joint venture. Part of the proceeds will be used to strengthen the company’s balance sheet by paying down a term loan.

Key Takeaways

  • Baker’s bid, if successful, would allow the company to continue its turnaround efforts outside the glare of private markets. Hudson’s Bay said it has formed a special committee to review the proposal. “No decision has been made and it intends to carefully and thoroughly review the proposal with the assistance of its outside financial and legal advisers,’’ the retailer said after the take-private bid was announced.
  • Meanwhile, Chief Executive Officer Helena Foulkes said the deal to sell the European assets allows the company to “fully focus our resources on HBC’s North American operations, including our best growth opportunities -- Saks Fifth Avenue and Hudson’s Bay.”
  • The European deal is the latest step in Foulkes’s everything-is-on-the-table approach, which has included selling flash-sale website Gilt and earlier merging its European operations with a rival department-store chain.

Market Reaction

  • Hudson’s Bay shares jumped 43% to C$9.11 at 10:14 a.m. in Toronto, after briefly touching C$9.40. The stock had lost 13% this year through Friday’s close. Even with today’s gains, the shares are far below the C$17 level when it went public in 2012.

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Hudson's Bay Co. is selling its European operations for C$1.5 billion as a group of investors led by Chairman Richard Baker looks to take the retailer private with a cash bid valued at about C$1.74 billion.
hudson. bay, saks, private
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2019-36-10
Monday, 10 June 2019 03:36 PM
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