Canadian retailer Hudson’s Bay Company (HBC) has formally rejected the unsolicited offer for its Galeria Kaufhof business in Germany from Signa Holding GmbH, the owner of the company’s principal German competitor.
“The Board has unanimously concluded that Signa’s proposal is not in the best interest of HBC’s shareholders,” said David Leith, lead independent Director of the Board. “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.”
“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,” added Richard Baker, governor, executive chairman, and interim CEO of HBC. “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.”
Continued Baker: “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.”