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OSC adjourns hearing on Rhône investment in HBC: Reuters

The Ontario Securities Commission (OSC) adjourned a hearing on Friday of U.S. activist hedge fund Land & Buildings Investment Management’s appeal against a conditional approval for a US$500 million ($636 million) investment in luxury retailer Hudson’s Bay Co from Rhône Capital.

The OSC, Canada’s biggest securities regulator, said the hearing will be held from December 6.

Jonathan Litt-led Land and Buildings had appealed against the Toronto Stock Exchange’s conditional approval for the investment.

The investment by Rhône Capital, a U.S. private equity firm, was part of a deal in which Hudson’s Bay sold its Lord & Taylor building on Manhattan’s Fifth Avenue to Softbank-backed shared workspace provider WeWork Cos for US$850 million.

Earlier this month, Hudson’s Bay said it had written consent for the equity investment from shareholders representing well over 50 percent of its outstanding common shares. Litt said the ones who voted had a “special interest” in the deal.

Hudson’s Bay did not immediately respond to a request for comment.

(Reporting by Ahmed Farhatha in Bengaluru; Editing by Shounak Dasgupta)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Reuters/Mark Blinch