HBC Provides Update on Unsolicited Offer for its German Business
February 07 2018 - 12:44PM
Business Wire
HBC (TSX: HBC) today announced that, after a careful review and
consideration conducted in consultation with our financial and
legal advisors which included an in-person meeting with SIGNA
Holding GmbH and its advisors, its Board of Directors unanimously
rejected the unsolicited proposal to acquire the Company's German
business and related real estate assets. Additionally, SIGNA
Holding GmbH has withdrawn its offer, thus concluding
discussions.
“The Board has unanimously concluded that Signa’s proposal is
not in the best interest of HBC’s shareholders. It significantly
undervalues our German business and related real estate assets and
is not supported by sufficient certainty of financing to warrant
further consideration at this time,” said David Leith, lead
independent Director of the Board.
“Our European business and related real estate assets represent
critical components of our long-term strategy and we continue to
have a high degree of confidence in our ability to drive results
across our iconic retail banners. Our diverse European real estate
holdings add significant value to our global real estate assets and
we remain committed to creating opportunities to improve the
productivity of our portfolio. The Company appreciates the interest
in its European business and real estate assets, which validates
the Company’s view of the considerable underlying value these
assets provide to HBC’s shareholders. As always, we remain
committed to any and all opportunities to enhance shareholder
value,” said Richard Baker, HBC’s Governor, Executive Chairman and
interim CEO.
About HBC
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.
Forward Looking Statements
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 HBC’s
long-term strategy, ability to drive results and creating
opportunities to improve the productivity of its portfolio and
other statements that are not historical 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) credit, market, currency, operational, real estate, liquidity
and funding risks generally, including changes in economic
conditions, interest rates or tax rates; (b) risks and
uncertainties relating to information management, technology,
supply chain, product safety, changes in law, competition,
seasonality, commodity price and business and (c) other risks
inherent to the Company's business and/or factors beyond its
control which could have a material adverse effect on the
company.
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 April 28,
2017, the "Risk Factors" section of HBC's MD&A dated December
6, 2017, as well as HBC's other public filings, available
at www.sedar.com and at www.hbc.com.
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.
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HBC MEDIA:Andrew Blecher,
646-802-4030Press@hbc.comorINVESTOR RELATIONS:Elliot
Grundmanis, 646-802-2469elliot.grundmanis@hbc.com