Karstadt owner Signa makes bid for Hudson’s Bay’s Kaufhof

Saks Fifth Avenue owner Hudson’s Bay Co said it had received a bid for its German department store chain Kaufhof from Signa Holding, the Austrian property and retail group that owns Karstadt, another German retail chain.

Signa expects Toronto-based Hudson’s Bay, which has been reluctant so far to engage in negotiations to sell Kaufhof, to respond to the offer by the middle of November. Hudson’s Bay called the offer incomplete, non-binding and unsolicited, with no evidence of financing.

In its offer letter to Hudson’s Bay, Signa stated its bid for Kaufhof would not be contingent on any third-party financing, since it already has 700 million euros in approved financing from European banks and also has cash available from a 1 billion-euro equity raise in October. Signa has also offered to assume all of Kaufhof’s liabilities, including a 1.34 billion-euro real estate loan by German bank LBBW. At a valuation of 3 billion euros including debt, Signa’s bid values Kaufhof’s real estate at 2.63 billion euros.

Karstadt Berlin