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Hudson's Bay Company Responds to Land & Buildings Press Release
Corrects Inaccurate Statements by Land & Buildings
Land & Buildings has made allegations regarding the
We urge Land & Buildings to stop misleading our shareholders. The Company is complying with all applicable regulatory requirements in respect of the transactions. Land & Buildings has suggested that the transactions disenfranchise shareholders, and that the Company should obtain minority shareholder approval for the equity investment. In fact, it is exactly the opposite -- more than a majority of the Company's current shareholders have already provided their informed consent to the transactions. None of them stand to gain any special benefit from the transactions. It is therefore Land & Buildings that is seeking to disenfranchise shareholders in order to try to impose its will on the Company's shareholders.
The series of strategic transactions with HBC,
- a U.S.
$500 millionequity investment, in the form of mandatorily convertible preferred shares, initially convertible into common shares at U.S. $9.82( C$12.42) per share;
- the sale of the Lord &
Taylor Fifth Avenuebuilding in a transaction valued at U.S. $850 million; and
- agreements to lease space to
WeWorkwithin select HBC department stores.
These transactions are interconnected and further the Company's strategic objectives, including the continued leveraging of its real estate assets, help to strengthen the Company's balance sheet and liquidity, and further position the Company as a leader in experiential retailing.
HBC is a diversified global retailer focused on driving the performance of high quality stores and their all-channel offerings, growing through acquisitions, and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC's portfolio today includes formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 480 stores and over 66,000 employees around the world.
HBC's leading banners across North America and Europe include Hudson's Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, Saks OFF 5TH, Galeria Kaufhof, the largest department store group in Germany, and Belgium's only department store group Galeria INNO.
HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.
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