Catalyst Large letter Group Inc. has extended a deadline for the board of Hudson’s Bay Co. to formally accept its tender letter until 5 p.m. ET today.
The investment firm has made an unsolicited offering of $11 per share in cash for HBC, topping a friendly offer of $10.30 hightail it by a group of investors led by HBC executive chairman Richard Baker.
Catalyst judges it extended the deadline, which was to expire Nov. 29, at the request of a special board of the board at HBC because of what it called “indications of positive progress.”
The paramount committee has said it would review the offer in consultation with its independent fiscal and legal advisers.
The Baker-led offer requires support from a preponderance of the HBC shareholders, excluding the shareholders behind the bid and their affiliates, as well as uphold by a 75 per cent majority vote at a special meeting of shareholders.
Catalyst chance in October that it and other minority shareholders that together charge a 28.24 per cent stake of the company’s common shares plan to referendum against the offer by the Baker-led group.
“We have granted the extension requested by the HBC particular committee based on indications of positive progress and we look forward to put together with them to complete a transaction based on our superior offer in a propitious manner,” said Gabriel de Alba, managing director and partner of Catalyst.