Canadian retailer Hudson's Bay Co. said Nov. 27 that shareholders representing nearly two-thirds of its outstanding common stock have confirmed their support for Rhône Capital LLC's proposed investment in the company.
Hudson's Bay announced Oct. 24 that Rhône Capital will buy C$632 million of its eight-year mandatory convertible preferred shares, initially convertible into common shares at C$12.42 per share. Hudson's Bay has said it expects Rhône would hold a 21.8% voting and equity interest in the company after the deal and about 30% voting and equity interest if the preferred shares are held to their eight-year maturity.
Activist investor Land & Buildings Investment Management LLChas claimed that Rhône Capital will gain 35% of Hudson's Bay's disclosed net asset value of $35 per share through the investment.
Hudson's Bay said it will seek to dismiss Land & Buildings' appeal regarding the Toronto Stock Exchange decision to conditionally approve Rhône's investment. Hudson's Bay said the case has been adjourned to accommodate the fact that Land & Buildings is appointing new counsel. The Ontario Securities Commission's hearing and review is now scheduled for Dec. 8 and Dec. 11.
Hudson's Bay said it believes that there is no merit to this appeal and it will seek to have the TSX decision confirmed.
