(Bloomberg) -- Hudson's Bay Co. Chairman Richard Baker stands to make about C$14.6 million ($11 million) in personal proceeds from his takeover of the Canadian retailer that will be reinvested in the company after it goes private.
Helena Foulkes, the company's chief executive officer, also stands to make about C$10.6 million in cash as part of a total payout of nearly C$34 million awarded to board members, according to a regulatory filing last week.
The payment will be made in cash at the proposed takeover price of C$10.30 a share for options and other preferred shares held by board members, the filing shows.
Baker will roll over his payout along with his existing shares into the new private company as part of an agreement reached with continuing shareholders, according to the filing. The investment will increase his relative stake of the private company after it closes.
Hudson's Bay agreed to sell itself to the group of investors led by Baker last month after the buyers agreed to increase the takeover price to C$1.9 billion.
“Neither Richard Baker nor any of the other continuing shareholders are receiving cash proceeds from the transaction,” said Annabelle Rinehart, a representative for the group. She confirmed that his proceeds will be reinvested in Hudson's Bay.
The original terms of the transaction, C$9.45 a share in cash, were opposed by two investors, Catalyst Capital Group and Land & Buildings Investment Management.
Land & Buildings, which is run by Jonathan Litt, still sees the deal as undervaluing the company, people familiar with the matter said last month.
To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Lisa Wolfson
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