Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
A group led by Hudson’s Bay Co. (HBC-T) executive chairman Richard Baker raised its takeover offer for the department store chain by $100-million on Monday and won approval for the bid from members of the company’s board of directors.
Now the 53-year-old real estate executive and his backers need to convince the majority of HBC’s remaining shareholders to take their cash, rather than continuing to own a stake in a 350-year-old retailer. HBC runs more than 300 stores under the Saks Fifth Avenue, Hudson’s Bay, and Saks OFF 5TH banners.
Mr. Baker, a group of private equity funds and an arm of WeWork Companies Inc. boosted their offer for the 43 per cent of HBC they do not own to $10.30 per share, up from an opening bid of $9.45 per share in June. A five-member special committee of independent HBC directors dismissed the original overture as “inadequate” in August, but endorsed the new price, which values the outstanding shares in HBC at $1.1-billion.
“We are pleased to have reached an agreement with respect to a transaction that provides immediate and fair value to the minority shareholders," said David Leith, chair of the HBC special committee and a former investment banker, in a press release. Mr. Leith said: "The special committee is confident that this transaction represents the best path forward for HBC and the minority shareholders.”
The new buyout offer comes at a 62-per-cent premium to the price of HBC stock prior to the consortium’s opening bid last June. HBC shares last traded on Friday at $9.45 on the Toronto Stock Exchange. HBC expects to hold a shareholder vote on the offer in December.
The bid needs to win support from a majority of HBC’s minority shareholders. That group includes Land & Buildings Investment Management LLC. and Catalyst Capital Group Inc., which also dismissed the opening offer from Mr. Baker’s group as inadequate. -Andrew Willis
See also: Baker’s $1-billion privatization bid ‘inadequate,’ HBC special committee says
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Knight Therapeutics Inc. (GUD-T) announced it acquire a 51.2-per-cent interest in Biotoscana Investments S.A. from a controlling shareholder group that includes Advent International and Essex Woodlands, for $189-million.
Following the completion of the transaction, Knight said it will launch a mandatory tender offer to acquire the remaining 48.8-per-cent interest from public shareholders on similar terms, for expected cash consideration of about $180 million.
“This transformational acquisition establishes Knight as a premiere pan-American (ex-US) specialty pharmaceutical company. With scale and a strong regional infrastructure, we will be well-positioned as the pan-American (ex-US) in-licensing partner of choice,” CEO Jonathan Ross Goodman said in a release. “The combination of Knight and GBT creates a compelling platform in large, fast-growing markets. GBT is a natural strategic fit, with a similar business model to Knight and strong relationships with global partners.”
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Investment dealer Canaccord Genuity Group Inc. (CF-T) sees opportunity amid the chaos in Australia, where the wealth-management industry is being reshaped by a government inquiry that was critical of the country’s biggest financial players.
Canaccord is paying $23-million to acquire Patersons Securities Ltd. in a deal that is scheduled to close on Tuesday. The Toronto-based brokerage house, which has $68-billion in client assets under management, is buying the Perth-based firm with 100 investment advisers and $13-billion in its care. Canaccord already has an investment-banking unit in Australia with 72 employees, but the Patersons purchase marks its first major foray into wealth management Down Under.
The Canadian firm is expanding as Australia’s wealth-management community, which was historically dominated by four large banks, deals with the fallout from a wide-ranging review by former High Court judge Kenneth Hayne, who ran a royal commission into misconduct in the banking, superannuation and financial-services industry. Mr. Hayne published his report last February.
-Andrew Willis
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Patriot One Technologies Inc. (PAT-T) announced the sale of its Patscan Multi-Sensor Covert Threat Detection Platform with its security system to integrator/reseller partner Ginter Electrical Contractors, LLC of Cincinnati, OH and Major League Baseball franchise, the Cincinnati Reds.
“We’re extremely excited to be deploying our Patscan Platform with Ginter Electrical and the Cincinnati Reds, Major League Baseball’s first professional team,” said Martin Cronin, Patriot One’s CEO. “Working with our reseller Ginter and the Reds’ security team has been a fantastic experience. Both organizations are focused on creating a safe venue without making it feel like a fortress so fans can enjoy the game of baseball.”