Canadian department store operator Hudson’s Bay Co said it saw no merit in activist fund Land & Buildings Investment Management‘s recent appeal against the Toronto Stock Exchange’s conditional approval for a US$500 million ($638 million) investment from Rhône Capital.
Hudson’s Bay said on Wednesday it had written consent for the equity investment from shareholders representing well over 50 percent of its outstanding common shares.
Land and Buildings had filed the appeal with the Ontario Securities Commission, Hudson’s Bay said.
Earlier this month, Land and Buildings, a U.S. hedge fund headed by activist investor Jonathan Litt, had urged the company to call for a non-insider vote on Rhône’s investment, saying the ones who voted had a “special interest” in the deal.
Last month Hudson’s Bay said Rhône, a U.S. private equity firm, would invest the US$500 million in the form of eight-year mandatory convertible preferred shares.
Land and Buildings, which had a near 5 percent stake in Hudson’s Bay as of July, did not immediately respond to a request for comment.
(Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/J.P. Moczulski