Indigo Books & Music Inc. says it has acquired a proposal to take the retailer personal from a pair of firms owned by controlling shareholder Gerald Schwartz.
The non-binding proposal from Trilogy Retail Holdings Inc. and Trilogy Investments L.P. would see them buy the issued and excellent shares of Indigo it doesn’t already personal for $2.25 in money per widespread share.
The 2 Trilogy companies are private holding firms of Schwartz, the Onex Corp. founder and chairman who sits on Indigo’s board of administrators and is the partner of Indigo chief government Heather Reisman.
Via the Trilogy companies, Schwartz is the controlling shareholder of Indigo. He owns round 56 per cent of the corporate’s issued and excellent widespread shares, whereas one other 4.6 per cent belong to Reisman by a distinct holding firm.
Trilogy says the supply represents a 50 per cent premium over Indigo’s closing worth on the final day of January.
It says it’s not considering promoting any of its shares.
Indigo introduced layoffs earlier this yr as a part of the retailer’s ongoing efforts to streamline its operations.
Indigo spokeswoman Melissa Perri stated on the time that the cuts have been a part of the corporate’s strategic plan meant to return the enterprise to profitability.
The corporate has seen a number of quarters of monetary losses in addition to quite a lot of adjustments to its government and board of administrators during the last yr.
Most just lately, the corporate reported a web lack of $22.4 million in its second quarter, a interval when founder and chief government Heather Reisman retired and turned the enterprise over to Peter Ruis.
Ruis left the corporate abruptly in September, making method for Reisman to return.
Shares in Indigo closed Thursday down 1.33 per cent at $1.48. The inventory worth’s 52-week excessive was $2.60 on Oct. 4.
The retailer will report its monetary outcomes for the quarter ended Dec. 31, 2023 within the coming weeks, however has not but set a date for his or her launch.
