Hudson’s Bay Company (HBAYF) received two bids at CAD 10.30 per share and CAD 11 per share. It currently trades at less than CAD 10 per share. With this in mind, investors will do good by reviewing very closely what’s going on with the sale of the business.
The company’s financial debt is the only small issue of HBAYF. However, it only trades at 9x EBITDA and appears to have a lot of valuable properties. In our view, if the company receives more acquisition proposals, the share price may increase by more than 25%.
On the top of it, we believe that the group of shareholders, who offered CAD 10.30 per share, should offer CAD 11 per share. Acquiring the company at that low mark with another buyer offering CAD 11 per share will be impossible.
Previous Financial Analysis:
Disclosure: We hold no position in HBAYF either long or short, and we have not been compensated for the research.