HBC says Catalyst declined request to extend its offer

TORONTO — The special committee of the board at Hudson’s Bay Co. says Catalyst Capital Group Inc. has turned down a request to extend a deadline for its offer for a roughly 10.7 per cent stake in the retailer.

The bid by the investment firm, which is seeking to buy the shares in an effort to oppose a proposal to privatize the company, is set to expire on Friday.

It is offering to buy up to nearly 19.8 million shares at a price of $10.11 per share.

Catalyst said its offer gives HBC shareholders an opportunity to receive cash within three business days at a premium to the current share price and the proposal by an insider group led by board chair Richard Baker.

“For those HBC shareholders that wish to reduce their exposure to the volatility of the sector and the issues and uncertainty related to the Baker Group proposal, our offer presents an opportunity to realize immediate value and liquidity,” stated Gabriel de Alba, managing director and partner of Catalyst.

Catalyst said it is committed to working with HBC’s special committee and board to seek out “every alternative that can maximize value for all shareholders, whether through a sale process, dividend distributions of the cash to be realized from the sale of the company’s key European assets or otherwise.”

Catalyst’s offer expires before the expected September completion of the formal valuation of the Baker-led group June bid of $9.45 per share to take HBC private, an offer the special committee has deemed inadequate in an initial analysis.