This is a few days late, but the headline coming from (TSX: HBC) is: “Shareholders Collectively Owning 57% of Hudson’s Bay Company’s Outstanding Common Shares Submit Take-Private Proposal for C$9.45 per Share in Cash”.
Almost anybody investing in this company from 2018 back will have lost money.
Today, HBC announced a very tepid quarterly report (this surely is not coincidental to the timing of the take-private offer – gives it some urgency to accept it). Sales down, gross profits down. Not good.
The takeover offer gives a $1.74 billion valuation to the equity, which I think existing minority shareholders will take in a heartbeat. I can’t see anybody else step in and give a better offer.
I think it is pretty inevitable that HBC will cease ordinary retail operations very soon – they either have to go very specialty or just get out of the business – a struggle not unknown to other retailers which have also been hammered to death as purchasing trends continue to shift.
Price target raised by a couple of analyst.2nd price shown is previous target.
Hudson’s Bay Co HBC:CA HOLD $10.50 $9.50 TD Securities 14 Jun 2019
Hudson’s Bay Co HBC:CA $12.00 $10.00 Cowen & Co 14 Jun 2019
Trading above CAD$9.66, so clearly the market is demanding a better price – whether they’ll get it or not, another question.