Hudson’s Bay Co., Canada’s oldest company, plans to file for an initial public offering that may raise C$500 million ($505 million), said two people with knowledge of the matter.
Hudson’s Bay plans to complete the offering in Toronto during North American autumn, said the people, who asked not to be identified as the process is confidential. Hudson’s Bay would likely sell 20 percent of itself, one person said.
The retailer, owner of the Lord & Taylor and Bay chains, is working with banks including Royal Bank of Canada and Bank of America Corp., said one of the people. Hudson’s Bay Chief Executive Officer Richard Baker declined to comment, as did representatives at Royal Bank and Bank of America. The New York Post reported the offering earlier.
Hudson’s Bay dates back to 1670, when the company was founded as a Canadian fur-trading venture. U.S. investor Jerry Zucker took the chain private in 2006 for C$860 million after fighting for more than a year to take control.
In 2008, NRDC Equity Partners, owner of the Lord & Taylor and Fortunoff retailing brands, agreed to acquire Hudson’s Bay, investing $500 million in new equity. Today, Hudson’s Bay has almost 500 retail sites across Canada, according to its website.
Last year, Hudson’s Bay agreed to sell store leases for its Zellers chain to Target Corp. (TGT), allowing the second-biggest U.S. retailer to expand outside the U.S. for the first time in history. Target said then that it planned to open its first stores in Canada starting in 2013.
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