Department store giant to get funding from a familiar source
Hudson’s Bay Co. is inching closer to going private.
An entity controlled by Hudson’s Bay Co. chairman Richard Baker will buy the stake owned by a unit of Ontario Teachers’ Pension Plan Board, according to Reuters.
Baker’s entity, Rupert of the Rhine LLC, will purchase approximately 18 million shares at $9.45 (Canadian dollars), L&T B Cayman Inc., a top shareholder in HBC and a joint buyer, told Reuters. This move will make Baker and his investment partners the largest shareholders, with a 70% stake in the company.
The acquired shares will represent about 9.76% of common shares on a non-diluted basis, and 7.54% assuming the conversion of the outstanding convertible preferred shares of HBC into common shares. Upon completing the deal, L&T B will own about 25.03% of HBC on a non-diluted basis, according to the report.
This is the company’s newest strategic move. The department store giant has been on a mission to boost lagging sales and combat market share erosion by e-commerce companies, including Amazon. For example, HBC already sold its unprofitable online brand Gilt, and plans to close up to 10 struggling Lord & Taylor stores. The brand’s 104-year-old Lord & Taylor flagship on Fifth Avenue in New York City officially closed its doors on Wed., Jan. 2.
To read more, click here.
An entity controlled by Hudson’s Bay Co. chairman Richard Baker will buy the stake owned by a unit of Ontario Teachers’ Pension Plan Board, according to Reuters.
Baker’s entity, Rupert of the Rhine LLC, will purchase approximately 18 million shares at $9.45 (Canadian dollars), L&T B Cayman Inc., a top shareholder in HBC and a joint buyer, told Reuters. This move will make Baker and his investment partners the largest shareholders, with a 70% stake in the company.
The acquired shares will represent about 9.76% of common shares on a non-diluted basis, and 7.54% assuming the conversion of the outstanding convertible preferred shares of HBC into common shares. Upon completing the deal, L&T B will own about 25.03% of HBC on a non-diluted basis, according to the report.
This is the company’s newest strategic move. The department store giant has been on a mission to boost lagging sales and combat market share erosion by e-commerce companies, including Amazon. For example, HBC already sold its unprofitable online brand Gilt, and plans to close up to 10 struggling Lord & Taylor stores. The brand’s 104-year-old Lord & Taylor flagship on Fifth Avenue in New York City officially closed its doors on Wed., Jan. 2.
To read more, click here.