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A group of shareholders of the parent company of Saks Fifth Avenue makes an offer to take the chain in private trouble. (AP Photo / Kathy Willens, File)
A group of Hudson's Bay Company shareholders wants to privatize the Canadian retailer.
The offer, announced Monday, is led by Richard Baker, executive chairman of Hudson's Bay, Rhone Capital LLC, WeWork Property Advisors, Hanover Investment SA and Abrams Capital Management. The proposal values the company at $ 9.45 Canadian ($ 7.12) per share.
Together, the group of shareholders holds a majority of 57% of the company.
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"We believe that improving performance (in Hudson Bay) will require considerable time and long-term patient capital, best suited in the context of a private company, without putting the # 39 focus on results and short-term returns, "Baker said in a statement.
The offer is conditioned in part by the sale of $ 1.5 billion of Hudson's remaining stake in its European business, announced Monday.
The Hudson's Bay Company owns brands such as Hudson's Bay, Home Outfitters, Lord & Taylor and Saks Fifth Avenue.
The company said a special committee comprised of independent directors would review the privatization proposal for shareholders and oversee a formal valuation.
"The Special Committee noted that no decision had been taken and that it intended to carefully consider the proposal with the assistance of its financial advisers and the There is no guarantee that a definitive agreement will be signed or that the proposed transaction be approved or consumed, "said Hudson Bay in a statement.
Shares in the retail group jumped more than 44% and closed at $ 6.85 per share after the announcement of the proposal.
Like many department stores, Hudson's Bay has struggled to adapt to a dramatic shift towards online shopping.
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Last month, Hudson's Bay announced that it hired a financial advisor to review its business acquired by Lord & Taylor, acquired in 2012, and that this process could result in a sale or merger.
This decision follows the closure of the flagship Lord & Taylor on Fifth Avenue in Manhattan in early January, after the sale of the building to WeWork, a company sharing office space.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| CBH | n / A. | n / A. | n / A. | n / A. |
Associated Press contributed to this report.
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