(Toronto) Indigo Books & Music announced that it has received a privatization proposal from Trilogy Retail Holdings and Trilogy Investments, two Gerry Schwartz portfolio companies that already own 56% of the company.
The non-binding proposal would allow Trilogy Retail Holdings and Trilogy Investments to purchase all of the issued and outstanding shares of Indigo that they do not already own for $2.25 in cash per share of common stock.
Trilogy Retail Holdings and Trilogy Investments are two personal portfolio companies of Mr. Schwartz, founder and chairman of Onex Corp, who serves on the Indigo board of directors and is the spouse of Indigo Chief Executive Officer Heather Reisman .
Mr. Schwartz, through the Trilogy Companies, is the majority shareholder of Indigo. He owns approximately 56% of the company’s issued and outstanding common stock, while 4.6% is owned by Mme Reisman through another company.
Trilogy claims the offer represents a 50% premium to Indigo’s closing price on the last day of January. She says she does not want to sell her shares.
Indigo announced layoffs earlier this year as part of its efforts to streamline its operations.
Indigo spokeswoman Melissa Perri said at the time that the staff reductions were part of the strategic plan to return the company to profitability.
The company has experienced several quarters of financial losses, in addition to a number of changes in its management and board of directors, over the past year.
The company recently reported a net loss of 22.4 million in the second quarter, during which Mme Reisman, its founder and CEO, retired and handed the business over to Peter Ruis.
Mr. Ruis abruptly left the company in September, making way for the return of Mr.me Reisman.
Indigo shares closed Thursday down 1.33%, at $1.48. The stock price hit a 52-week high on October 4, at $2.60.
The retailer will release its financial results for the quarter ended December 31, 2023 in the coming weeks, but has not yet set an exact date.