Hudson’s Bay Company (HBC), the parent of Saks Fifth Avenue and Saks Off 5th, confirmed it has received an unsolicited takeover offer from Catalyst Capital Group valued at C$2.03 billion ($1.53 billion).
Catalyst, which owns 17.5 percent of HBC, is offering $11 Canadian dollars per share, which tops a rival bid led by a shareholder group, including CEO Richard Baker, which owns 57 percent of the common stock.
“The Special Committee of the HBC Board of Directors will review the offer in consultation with its independent financial and legal advisors to determine the course of action that is in the best interests of HBC and the minority shareholders,” the retailer said in a statement. “No action is required by HBC shareholders at this time. There can be no assurances that any transaction with Catalyst will occur.”
The company, which has its roots in the Canadian fur trade in the 17th century and is the oldest company in North America has had a rough time of late. It recently sold the Lord & Taylor chain in the U.S. and in Canada has been winding down the business of the Zeller’s stores.
In 2018, the group also sold Gilt Groupe to Rue La La. The retailer previously sold a majority stake in its European retail operations to Signa Holdings, which owns Karstadt department store chain in Germany, and a 50 percent stake in its European real estate properties.