Shareholders of Indigo Books & Music vote in favor of privatization sale – Business News

Indigo Books & Music Inc. Shareholders Vote to Take Company Private

In a significant move for the Canadian bookstore chain, Indigo Books & Music Inc. shareholders have voted to approve a deal that will see the retailer become a private company. The vote, which took place on Monday, saw shareholders in favor of a $2.50 per share offer from Trilogy Retail Holdings Inc. and Trilogy Investments L.P.

The Trilogy companies, which have a 56 per cent stake in Indigo, originally offered $2.25 per share but raised their bid in April. The vote, which required approval by a two-thirds majority of Indigo shareholders, saw 95.09 per cent in favor of accepting the deal.

Indigo CEO Heather Reisman expressed her pleasure with the outcome of the vote, stating, “We remain deeply committed to our customers and to all our stakeholders as we work together to inspire reading and enrich the lives of booklovers across the country.”

The privatization of Indigo will allow the company to avoid public reporting responsibilities as it works to bring profitability and growth back to Canada’s biggest bookstore. The move comes as Indigo continues to recover from a cyber attack, quarterly losses, and changes in board leadership.

Trilogy now faces the task of guiding Indigo through its transformation plan, which aims to return the company to growth and profitability. The deal is expected to close in June, with Indigo’s shares being delisted from the Toronto Stock Exchange shortly after.