Hudson’s Bay Co. insisted that it has strong shareholder support for a Rhône Capital’s equity investment of $500 million in the form of eight-year mandatory convertible preferred shares.
The investment was previously announced as an element in a series of interconnected and strategic transactions with Rhône Capital, WeWork Cos. and certain of their affiliates.
Shareholders representing nearly two-thirds of HBC’s outstanding common shares have confirmed their support for these transactions, the company asserted.
Land & Buildings, an investment manager specializing in publicly traded real estate and real estate-related securities, launched an appeal of the deal with the Toronto Stock Exchange, which conditionally approved Rhône Capital’s equity investment. An adjournment to accommodate the appointment of new Land and Buildings counsel is in place, so an Ontario Securities Commission hearing and review now is scheduled for December 8 and 11. HBC said it believes there is no merit to the appeal and that it will seek to have the TSX decision confirmed and the appeal dismissed.