Indigo Books & Music Inc. has agreed to be taken personal after agreeing to a sweetened supply from a holding firm linked to its largest shareholder.
The retailer says its settlement will see Trilogy Retail Holdings Inc. and Trilogy Investments L.P. pay $2.50 per share in money for the stake in Indigo they don’t already personal.
The Trilogy corporations, owned by Gerald Schwartz, the partner of Indigo chief government Heather Reisman, supplied Indigo $2.25 per share in money in February.
Indigo didn’t say what brought about Trilogy to spice up its supply however famous the brand new value displays a 69 per cent premium on the share value of $1.48 that Indigo had when Trilogy first made its bid.
Indigo says an impartial committee of its board of administrators just lately unanimously really useful the corporate settle for Trilogy’s newest supply.
‘Difficult years for the enterprise’
If shareholders comply with the deal throughout a Could vote, Indigo expects the transaction to shut in June and its shares to be delisted from the Toronto Inventory Trade someday after.
“We consider that this transaction will present minority shareholders with a considerable premium for his or her shares following some difficult years for the enterprise, whereas additionally guaranteeing a robust future for Indigo with full possession by a crew that has demonstrated a deep dedication to Indigo’s mission,” Indigo board chair Markus Dohle mentioned in a press release.
The private info of present and former Indigo workers was stolen in a cyberattack. There isn’t a proof the information has been launched, regardless of claims it has, however consultants say the danger just isn’t gone.
The final two years have seen Indigo encounter a ransomware assault that downed its web site for a prolonged interval and the departure of a number of board members, together with one who mentioned she skilled a “lack of confidence in board management.”
Amid these challenges, Indigo’s founder, Reisman, returned to the corporate’s helm after retiring in the summertime of 2023.
