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HBC Agrees to Sell Remaining European Real Estate and Divest Related Retail Joint Venture for $1.5 Billion
- Solidifies HBC’s strategic focus on North American operations and greatest opportunities for growth -
Saks Fifth Avenueand Hudson’s Bay
- Transaction betters real estate mark established in
September 2018for same assets
- Proceeds to be used to strengthen HBC’s balance sheet by fully repaying term loan
As part of the overall transaction, HBC will assume ownership of
The transaction is expected to close in fall 2019, subject to applicable regulatory approvals and other customary closing conditions. At signing, SIGNA delivered a deposit of
Q1 2019 Financial Results Schedule
HBC will announce financial results for the first quarter 2019 on
The conference call will be accessible by calling the operator assisted toll-free dial-in number (800) 535-7056 or international dial-in number (253) 237-1145. A live webcast of the conference call will be accessible on HBC's website at: http://investor.hbc.com/events.cfm. The audio replay also will be available via this link.
Figures in this press release assume EUR:CAD = 1:1.5 and USD:CAD = 1:1.31
Certain statements made in this news release are forward-looking statements within the meaning of applicable securities laws, including, but not limited to, statements with respect to: the sale and divestiture of the Company’s remaining stakes in its European joint ventures to SIGNA and assumption of liabilities; the anticipated completion of the proposed transactions; the expectation that the European joint venture transactions will deliver important financial and strategic benefits, including further advancing HBC's strategy and growth opportunities for its North American businesses, unlocking the value of real estate and improving and strengthening HBC’s balance sheet; the expectation that a portion of the net proceeds from the proposed transactions will repay the Company’s outstanding term loan; the Company’s options and future plans for the HBC Netherlands retail business and its assets; potential cost savings initiatives with respect to the HBC Netherlands retail business, including store closures; and other statements that are not material facts. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology.
Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond HBC's control and the effects of which can be difficult to predict: (a) the failure to obtain or satisfy, in a timely manner or otherwise, required regulatory approvals and other conditions of closing necessary to complete the proposed transactions; (b) the failure to obtain or satisfy, in a timely manner or otherwise, conditions of closing necessary to complete the sale of the proposed transactions on the contemplated timelines; (c) the possibility that the anticipated benefits from the proposed transactions cannot be realized in a timely manner or otherwise; (d) the possibility that the anticipated cost savings initiatives, including certain store closures, cannot be realized, and review strategic options related to
HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC's actual results to differ from current expectations, please refer to the "Risk Factors" section of HBC's Annual Information Form dated
The forward-looking statements contained in this news release describe HBC's expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
HBC is a diversified retailer focused on driving the performance of high quality stores and their omni-channel platforms and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in
HBC also has significant investments in joint ventures. It has partnered with
Source: Hudson’s Bay
Phone: (646) 802-4631
Phone: (646) 802-4030