HBC chair Richard Baker wins shareholder approval to take retailer private

HBC chair Richard Baker wins shareholder approval to take retailer private
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TORONTO — Hudson’s Bay Co. executive chairman Richard Baker has won shareholder approval to take the retailer private.

About 98 per cent of the Toronto-based department store owner’s shareholders approved the go-private move and about 94 per cent of minority shareholders supported it.

The vote comes after a shareholder group headed by Baker increased its going-private offer to $11 per share, winning the backing of rival shareholder Catalyst Capital Group, which had opposed an earlier offer of $10.30 per share.

Catalyst had used various techniques to block the Baker group, including making a counter offer of $11 per share and a successful trip to the Ontario Securities Commission, which directed HBC and the Baker group to provide more information before holding a shareholder vote.

HBC’s board of directors unanimously recommended shareholders support the sweetened offer.

To pass, the deal needed to land at least 75 per cent of all shareholder votes and a simple majority of votes from minority shareholders, including Catalyst.

Companies in this story: (TSX:HBC)

This report by The Canadian Press was first published Feb. 27, 2020.

 

The Canadian Press

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