HBC says it has strong shareholder support for Rhone Capital investment deal

Hudson's Bay Co. says shareholders representing almost two-thirds of its outstanding common shares have confirmed their support for the company's deal with Rhone Capital.

Land and Buildings Investment Management has criticized the deal and sought to have shareholders vote on the investment in the retailer by the private equity firm.

The Toronto Stock Exchange has conditionally approved Rhone's investment, however Land and Buildings is seeking to appeal that decision at the Ontario Securities Commission.

A hearing is scheduled to be held on Dec. 8 and 11.

• HBC sells Lord & Taylor flagship store in NYC for $1B

Under the deal, Rhone has agreed to invest $632 million in the form of eight-year mandatory convertible preferred shares in HBC.

The investment was announced last month as part of a deal that included the sale of HBC's Lord & Taylor Fifth Avenue building to WeWork Property Advisors, a joint venture between WeWork and Rhone, for nearly $1.1 billion.