(Bloomberg) -- Hudson’s Bay Co. received a take-private proposal of C$9.45 per share in cash from a group of holders, led by Chairman Richard Baker, owning about 57 percent of shares outstanding. The deal price represents a premium of 48 percent to the prior closing price on June 7.

“While we continue to believe in HBC’s long-term potential, it has become clear that the significant challenges, risks and uncertainties facing HBC in the rapidly evolving retail environment are best addressed in a private market setting. Our all-cash proposal would provide HBC’s public shareholders the ability to realize immediate and certain value for their shares at a substantial premium while transferring the risks and uncertainties facing HBC to the Continuing Shareholders," Baker says.

The group bidding to take Hudson’s Bay private includes Baker, Rhone Capital LLC, WeWork Property Advisors, Hanover Investments SA and Abrams Capital Management LP. Ontario Teachers’ Pension Plan Board has also agreed to sell its entire block of about 10 percent shares outstanding.

The company has formed a special committee of independent directors to review the offer. JPMorgan Securities is acting as Hudson Bay’s financial adviser to assist with the company’s review. BofA Merrill Lynch and RBC Capital Markets are serving as the shareholders’ financial advisers.

Hudson’s Bay issued a statement earlier indicating plans to sell its remaining European real estate and sell related retail joint venture for C$1.5 billion.

Hudson’s Bay shares were halted prior to the news.

To contact the reporter on this story: Kimberly Yuen in New York at kyuen3@bloomberg.net

To contact the editor responsible for this story: Chakradhar Adusumilli at cadusumilli@bloomberg.net

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