HUDSON’S BAY COMPANY RECEIVES UNSOLICITED OFFER TO PURCHASE ITS GERMAN BUSINESS

Hudson’s Bay Company has reported that it has received an incomplete, non-binding, and unsolicited offer for its Galeria Kaufhof business in Germany, “with no evidence of financing” from Signa Holding GmbH, the owner of the company’s principal German competitor.

The retailer said that its Board intends to review the offer in due course, and cautions that the offer is subject to many conditions and contingencies.

“As we’ve previously stated, our European business is an important element of the company’s strategy,” the company said in a statement. “HBC remains focused on executing its strategy and plans for the upcoming holiday season. As a matter of policy, the company does not comment on rumor and speculation and does not plan to comment further unless required by law.”

Two years ago, HBC bought Galeria Kaufhof, related real estate holdings and Galeria Inno in Belgium for $2.7 billion from Metro AG.

Galeria Kaufhof is Germany’s leading department store chain. Signa is considered Austria’s largest privately owned real estate company and owns the Karstadt department store chain in Germany.