timberland official website Bay agrees to delay deal that would see Rhone Capital buy stake in retailer
TORONTO The Ontario Securities Commission announced on Friday that Hudson Bay Co. (TSX:HBC) has agreed to temporarily postpone a deal that would see private equity firm Rhone Capital buy a sizable stake in the retail giant. activist investor Land Buildings Investment Management LLC applied on Monday for the regulator to review the Toronto Stock Exchange Nov. 7 decision to provide conditional support to New York based Rhone $632 million equity investment in the form of eight year mandatory convertible preferred shares.
The funding was part of a deal that included the sale of HBC Lord Taylor Fifth Avenue building to WeWork Property Advisors for nearly $1.1 billion and to pursue a strategic alliance with WeWork to pursue future real estate transactions.
Per the order issued today, the OSC says HBC and Rhone have agreed to not close the transaction before Dec. 4 or the conclusion of the hearing and review of the TSX decision, whichever date is earlier.
The owner of Hudson Bay, Saks Fifth Avenue and Lord Taylor said it expects Rhone will initially hold a 21.8 per cent voting and equity interest in the company on a partially diluted basis and that could grow to 30 per cent if the preferred shares are held to their eight year maturity.
Land Buildings has urged the retailer to consider a bid for its German operations by Signa Holding and criticized HBC for selling a controlling interest in the company without seeking the approval of minority shareholders.