Indigo Confirms Receipt of Unsolicited Non-Binding Privatization Proposal
Indigo Books & Music Inc., Canada’s leading book and lifestyle retailer, announced today that it has received a non-binding proposal from Trilogy Retail Holdings Inc. and Trilogy Investments L.P. outlining a potential transaction to acquire all of the issued and outstanding common shares of the Company that Trilogy and its joint actors do not currently own for $2.25 in cash per common share. The Board of Directors of Indigo confirms that the proposal is under review and a special committee of independent directors has been established to evaluate the proposal and any other viable alternatives.
Trilogy, controlled by Mr. Gerald W. Schwartz, currently owns approximately 60.63% of Indigo’s issued and outstanding common shares. The proposal comes as Trilogy aims to acquire the remaining shares and take the company private. However, it is important to note that the proposal is non-binding and there is no guarantee that the transaction will be completed.
The special committee, made up of independent directors, will carefully evaluate the proposal and consider other options that may be available to the Company. As part of this process, an independent valuator will prepare a formal valuation of the proposal. The Board advises shareholders and others to refrain from taking any action at this time and assures that updates will be provided in accordance with applicable securities laws.
Any transaction resulting from the proposal would require shareholder approval and would be subject to conditions customary for this type of transaction. It is expected that the transaction will also be subject to Multilateral Instrument 61-101, which would require approval from a majority of minority shareholders of the Company.
Indigo Books & Music Inc., listed on the Toronto Stock Exchange under the ticker symbol IDG, is known for its retail stores across Canada, offering a curated assortment of books, gifts, home, wellness, fashion, paper, baby, and kids’ products. The Company also operates a retail store in Short Hills, New Jersey, in the United States.
In addition to its retail operations, Indigo is committed to addressing educational inequality in Canada through its registered charity, the Indigo Love of Reading Foundation. Since 2004, the Foundation has provided over $35.0 million in resources, including books and learning materials, to more than 1,000,000 students across the country.
As the Board reviews Trilogy’s proposal, Indigo will continue to prioritize its commitment to customers and its mission of connecting people through stories and providing a meaningful retail experience. Shareholders and stakeholders will be kept informed of any developments throughout the process.
Disclaimer: This article provides general information only and does not constitute investment advice. Readers should consult their financial advisors before making any investment decisions.
