Hudson’s Bay stock jumps after group makes cash bid for company shares - Global News

Hudson’s Bay Co. stock was up 42 per cent Monday after a group of shareholders, including executive chairman Richard Baker, proposed taking the retailer private once it completes the sale of its remaining German holdings for $1.5 billion.The group, which holds a 57 per cent stake in HBC, is offering $9.45 per share in cash to other investors — the same price paid by one of Baker’s entities to the Ontario Teachers’ Pension Plan in January.Story continues belowREAD MORE: All Home Outfitters locations in Canada to close, HBC says“While we continue to believe in HBC’s long-term potential, it has become clear that the significant challenges, risks and uncertainties facing HBC in the rapidly evolving retail environment are best addressed in a private market setting,” Baker said in a statement.“Our all-cash proposal would provide HBC’s public shareholders the ability to realize immediate and certain value for their shares at a substantial premium while transferring the risks and uncertainties facing HBC to the continuing shareholders.”HBC shares, which ended last week at a record-low close of $6.37, have been falling in recent years as the company has struggled to keep up with a changing retail environment.The shares traded for $9.20 by late-morning Monday, after hitting a 2019 intraday high of $9.40 earlier in the day.WATCH: Hudson’s Bay signs deal to sell Vancouver location

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June 10, 2019 at 08:31PM