The main floor of Saks Fifth Avenue’s New York City flagship store. Owner Hudson’s Bay Co. announced Monday it may take the company private. (Photo courtesy of Saks Fifth Avenue)
Toronto—Hudson’s Bay Co., the owner of Saks Fifth Avenue, may soon be taken private after its board and shareholders reached an agreement, the company announced Monday.

The shareholder group, which holds 57 percent of the company, has agreed to pay CA$10.30 ($7.87) per share, a 62 percent premium to the stock’s closing price on the Toronto Stock Exchange on June 7.

The shareholder group had offered CA$9.45 ($7.22) per share in June, but the offer was rejected by the special committee established to oversee the company’s privatization.

The company’s board of directors received the unanimous recommendation of the special committee and recommended minority shareholders vote in favor of the deal at the shareholder meeting last December.

The deal will need 75 percent approval from shareholders. 

Via a statement, the special committee gave insight into its reasoning for going private, which included factors such as a “deteriorating” retail environment and high restructuring costs.

“The department store and specialty retail competitive landscape continues to evolve rapidly and the company will be required to invest substantial capital and resources to remain relevant to its customers and successfully compete,” stated HBC.

The Toronto-based company, which has been downsizing its portfolio, recently sold Lord and Taylor to clothing rental site Le Tote and closed 15 Hudson’s Bay stores across the Netherlands.

 


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