Catalyst Capital Group said it will acquire a 10.05 percent interest in Canadian department store operator Hudson’s Bay Co (TSX: HBC) for about $187 million.
The Canadian private equity firm said it will complete the purchase of common shares within three business days.
Catalyst first offered to buy shares of Hudson’s Bay in July. It amended the offer earlier this month, increasing the transaction’s value to as much as $200 million from $150 million.
The purchase, which will add to Catalyst’s existing holdings, is intended to block the proposed $1.74 billion take-private acquisition of Hudson’s Bay, announced in June.
Catalyst Announces Successful Results of Tender Offer for Shares of Hudson’s Bay Company
– Catalyst tender offer has resulted in 18,491,502 shares tendered, representing 10.05% of HBC shares outstanding
– Catalyst will complete cash purchase of shares within three business days
TORONTO, Aug. 19, 2019 /CNW/ – The Catalyst Capital Group Inc., on behalf of investment funds managed by it, (“Catalyst”) today announced that it received and accepted 18,491,502 shares of Hudson’s Bay Company (TSX: HBC) (“HBC” or the “Company”) at a purchase price of $10.11 per share in cash, for an aggregate cost of approximately $187 million. The shares accepted for purchase represent 10.05% of HBC’s total shares outstanding. Catalyst will complete the purchase of the shares within three business days.
Gabriel de Alba, Managing Director and Partner of Catalyst, said, “We are pleased with the result of our offer to HBC shareholders, which gave participating shareholders an immediate premium to both the market price of HBC shares and to the Baker Group’s proposal.”
Added Mr. de Alba, “The 10.05% of HBC shares adds to our existing holdings and we look forward to working with HBC, the Special Committee of the Board and the Company’s stakeholders to ensure that this iconic company and its substantial assets are positioned to unlock value and that any transaction or strategic alternative maximizes value for the benefit of all shareholders.”
Catalyst continues to support the Special Committee’s process and maintains that the Special Committee reject any effort by the controlling shareholders of the Company and certain other insiders, who on June 10, 2019 made a buyout proposal, (the “Baker Group”) to disenfranchise the Company’s minority owners. Catalyst is committed to working with the Special Committee and the HBC Board to seek out every alternative that can maximize value for all shareholders, whether through a sale process, dividend distributions of the cash to be realized from the sale of the Company’s key European assets or otherwise.
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