Catalyst extends deadline for offer at request of Hudson's Bay special committee
The Catalyst Capital Group, on behalf of investment funds managed by it, provided an update on its offer to acquire all of the issued and outstanding shares of Hudson's Bay Company for cash consideration of C$11.00 per common share. Catalyst disclosed its independently financed, all-cash transaction on November 27, 2019, as a superior offer in both financial terms and structure to the company-sponsored share buyback outlined in the October 20, 2019 arrangement agreement between insiders led by Mr. Richard Baker and the company. Gabriel de Alba, Managing Director and Partner of Catalyst, said, "We have granted the extension requested by the HBC Special Committee based on indications of positive progress and we look forward to working with them to complete a transaction based on our superior offer in a timely manner. We, however, will not tolerate any negotiations in bad faith and remain concerned about the Board's willingness to have an open process to maximize value for all shareholders. Transparency to minority shareholders is critical given the numerous issues related to the Baker Group Agreement. It is also time to remove the limitations imposed on the Special Committee and create an open and competitive process. As such, we will continue to take appropriate steps to ensure that the Special Committee pursues opportunities that benefit all shareholders. We have received strong support from shareholders and other stakeholders of HBC, including from shareholders that would wish to be a co-sponsor of our offer and participate in supporting the Company over the long-term. The Special Committee now needs to act and if the status quo remains, we will vote against the Baker Group Agreement and urge our fellow shareholders to do the same."