**Indigo Shareholders to Vote on Sweetened Offer: Will the Bookstore Chain Go Private?**
In a pivotal moment for Indigo Books & Music Inc., shareholders are set to cast their votes today on whether to accept a revised proposal from a holding company looking to privatize the beloved bookstore chain. The offer on the table stands at $2.50 per share, a tempting increase from the initial bid of $2.25 per share put forth by Trilogy Retail Holdings Inc. and Trilogy Investments L.P.
**A Family Affair: The Intricate Web of Relationships**
It’s worth noting that Trilogy Retail Holdings Inc. and Trilogy Investments L.P. are both owned by Gerald Schwartz, who happens to be the spouse of Indigo’s chief executive, Heather Reisman. This familial connection has raised some eyebrows among critics of the deal. Schwartz already holds a significant stake in Indigo, with 56 per cent of the company’s common shares under his control. Additionally, Reisman owns 4.6 per cent through a separate holding company.
**The Power of Consent: Decision Time for Shareholders**
For the revised offer to go through, it must receive approval from at least two-thirds of Indigo shareholders, as well as a simple majority vote from shareholders who are not affiliated with Trilogy or its entities. The proposal has already garnered the backing of a special committee of independent directors established by Indigo to review the offer, as well as the green light from the Ontario Superior Court of Justice.
If shareholders give the green light to the deal, Indigo anticipates that the transaction will be finalized in June, paving the way for the company’s shares to be delisted from the Toronto Stock Exchange shortly thereafter. This potential move towards privatization has sparked a mix of excitement and skepticism within the market and beyond.
In the ever-evolving landscape of retail and e-commerce, the fate of Indigo Books & Music Inc. hangs in the balance, waiting on the collective decision of its shareholders. Will the allure of a sweetened offer be enough to sway them towards privatization, or will concerns over familial ties and independence prevail? As the voting takes place, the future of this iconic Canadian brand remains uncertain yet full of possibilities.
Reference
