HBC, A Department Store Operator, Was Offered $1 Billion 500 Million By The Consortium Led By The Chairman.

In October 21st, the Canadian Department store operator Hudson "s Bay Co", the parent company of luxury department store Saks, announced that it had reached a transfer agreement with the HBC shareholder consortium. Accordingly, the HBC shareholder consortium, led by the company's executive chairman Richard Baker, will acquire HBC at a price of 1 billion 900 million Canadian dollars (about 1 billion 500 million US dollars), or 10.3 yuan per share, and privatize it.

HBC shareholders' consortia include: HBC executive chairman Richard Baker, private equity fund Rh ne Capital L.L.C., real estate company WeWork Property Advisors, investment company WeWork, and Rh. HBC shareholders' consortium currently holds about 57% of the company's common stock. Under the agreement, the acquisition of HBC must be approved by majority shareholders other than HBC shareholders' consortium.

It was revealed that after announcing the agreement, Land & Buildings, a minority shareholder of HBC, opposed the transaction and thought the purchase price was inappropriate.

However, in October 21st, HBC's share price rose 6.14% on the previous day, closing at 10.03 yuan per share, slightly lower than the offer price. To a certain extent, it shows that most investors believe that the minority shareholders will pass the proposal finally.

David Leith, chairman of the special committee established by the HBC board, said: "in the past four months, in order to maximize the interests of shareholders, we have conducted a comprehensive assessment of the recommendations and options of the shareholders' consortium. Now, we are pleased to conclude the equity trading agreement. "

　　 Founded in 1670, HBC is one of the oldest department store operators in North America. In North America and Europe, it has Saks Fifth Avenue, Hudson 's Bay, Lord & Taylor, Saks Off Off and other high-end department stores, in addition to the famous German department store group, and Billy's only Department Store Group.

In 2012, in the face of the impact of e-commerce and the deterioration of physical retail development, Richard Baker led HBC to be listed successfully. In the 2018 fiscal year, HBC carried out drastic reforms.

Closing stores that are not performing well to cut costs

Sell its luxury luxury flash website Gilt Groupe to rival Rue La La;

Joint venture with enterprises to manage European business -- in November 2018, HBC Europe and SIGNA's Karstadt Warenhaus GmbH merged to form a joint venture European Department Store Group (EDS Group).

Sale of old luxury stores Lord&Taylor stores

According to the report in early April this year, HBC sales reached 9 billion 400 million Canadian dollars in fiscal year 2018, but it was affected by the restructuring cost of 194 million Canadian dollars. The net loss reached 631 million Canadian dollars. However, its luxury goods department Saks Fifth Avenue achieved sales growth for seven consecutive quarters.

In June of this year, Richard Baker offered to buy HBC at a total price of 1 billion 740 million Canadian dollars, or 9.45 yuan per share, and privatized it. However, it was opposed by Catalyst Capital Group, a Canadian investment company who acquired HBC 16% stake earlier this year, and subsequently raised its offer.