The recent postponement of a special shareholder meeting by Hudson’s Bay Company (HBC) has sent shockwaves through the business world. Scheduled for December 17th, the meeting was meant to decide on a proposal put forth by executive chairman Richard Baker to take the company private. However, the Ontario Securities Commission’s order for more transparency has forced HBC to delay the meeting indefinitely, leaving investors in limbo.
The proposal, valuing the company at C$1.9 billion, has faced challenges in garnering enough support from minority shareholders. Despite the Baker-led group owning a majority stake of 57%, opposition from shareholders like Catalyst Capital and Paradise Developments has thrown a wrench in the plans. Catalyst even made a counter-bid of C$11.00 per share, but it was rejected by the special committee that endorsed Baker’s offer.
Institutional Shareholder Services (ISS) further complicated matters by advising against the Baker proposal, citing the need for a better deal. With pressure mounting, the fate of HBC going private hangs in the balance. However, Catalyst Capital’s offer still stands, with managing director Gabriel de Alba pushing for negotiations to move forward.
De Alba has criticized HBC for its lack of transparency and has urged the company to reconsider the Baker group agreement in favor of Catalyst’s cash offer. As stakeholders eagerly await the next move, uncertainty looms over the future of Hudson’s Bay Company.
For further information on this ongoing saga, you can refer to these links:
1. The Globe and Mail article on Ontario Securities Watchdog’s order to HBC
2. Reuters coverage of Catalyst Capital’s bid for HBC
