The Board of Directors of Hudson's Bay Company (Hbc) has unanimously endorsed an agreement with Maple Leaf Heritage Investments Acquisition Corporation (MLHI), in which MLHI will provide an amended all-cash offer for all outstanding common shares at an increased price of CDN $15.25 per share.
MLHI has also made an all-cash offer for all of the outstanding 7.5 percent convertible unsecured subordinated debentures due December 1, 2008 of Hbc at a price of CDN $1,010 for each CDN $1,000 principal amount of debentures, plus accrued and unpaid interest to the date the debentures are taken up under the debenture offer.
Yves Fortier, Governor of Hudson's Bay Company, said, “The Board has conducted a thorough process to maximize value for the shareholders of Hbc, and after considering several offers for the Company, has unanimously endorsed and is recommending that shareholders tender to the amended offer from Maple Leaf Heritage Investments Acquisition Corporation.”
“We are satisfied that the amended offer constitutes full and fair value for the Company,” he said.
Jerry Zucker, Chairman, President and CEO of MLHI said, "We are pleased to have reached this agreement with Hbc today and to be associated with a company with such a long and proud history. As the company's largest shareholder for more than two years, we are aware of the tremendous opportunities available to Hbc.”
“We look forward to working with management and associates to build upon the company's strong position and dynamic growth opportunities. We are committed to enhancing our customers' shopping experience through a substantially greater focus on service and revitalizing the spirit of the organization. Through the implementation of more efficient methods we will positively differentiate Hbc from its competitors," he added.
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