Executive chairman Richard Baker—along with five private equity funds and a division of WeWork—convinced the Hudson’s Bay Company’s (HBC) board of directors to take the company private after the group boosted its takeover offer by $100 million, from $9.45 per share to $10.30 per share. The buyout values HBC at $1.9 billion and its stock price 62 per cent higher than when the consortium launched its bid in June. A majority of HBC’s minority shareholders need to endorse the deal for it to materialize. (The Logic)
Talking point: The 349-year-old department store company has been grappling with declining sales amid online competition. Baker said taking the company private will allow it to turn the business around without the public scrutiny that comes with quarterly-earnings reports. The business plans to cull 300 brands and introduce 100 new ones as part of that transition. It’s also indicated an interest in the office-space business with its partnership with WeWork. HBC shareholders previously cautioned that the U.S. firm’s failed IPO and its own financial challenges could be a liability for HBC, which is a landlord for WeWork.