- After enduring hundreds of millions in recent losses, abrupt leadership changes and a crippling cyberattack, pandemic shareholders of Indigo Books & Music (TSX:IDG) may finally have their chance at a positive exit
- The retailer is considering a non-binding proposal from Trilogy Retail Holdings and Trilogy Investments to take it private at C$2.25 per share
- Indigo is Canada’s leading book and lifestyle retailer
- Shares of Indigo Books & Music (TSX:IDG) are flat year-over-year, but have lost about 75 per cent since 2019
After enduring hundreds of millions in recent losses, abrupt leadership changes and a crippling cyberattack, pandemic shareholders of Indigo Books & Music (TSX:IDG) may finally have their chance at a positive exit.
Indigo is considering a non-binding privatization proposal from Trilogy Retail Holdings and Trilogy Investments at C$2.25 per share, representing about a 50 per cent premium to the closing price on Jan. 31, 2024.
The acquirers currently own 56 per cent of Indigo’s issued and outstanding common shares and are controlled by Gerald W. Schwartz, the founder of Onex Corp., a member of Indigo’s board, and husband to newly returned chief executive officer, Heather Reisman.
Indigo’s board has since established a special committee of independent directors to evaluate the proposal, which may require minority shareholder approval, and oversee an independent valuation of the company.
The news follows an unspecified number of layoffs announced last month as part of Indigo’s path to consistent profitability. Its losses over the past five years have left shareholders from the 2010s down by between 66 and 89 per cent.
Indigo is Canada’s leading book and lifestyle retailer. It operates under the Indigo, Chapters, Coles and IndigoSpirit brands.
Shares of Indigo Books & Music (TSX:IDG) are up by 46.62 per cent trading at C$2.17 per share as of 10:44 am ET. The stock is flat year-over-year, and has lost about 75 per cent since 2019.
Join the discussion: Find out what everybody’s saying about this potential privatization on the Indigo Books & Music Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.