Indigo Books and Music (IDG) has agreed to be taken private as its finances and stock continue to deteriorate.
The Toronto-based retailer run by founder Heather Reisman has agreed to be taken private by the Trilogy holding company that is run by Reisman’s husband Gerald Schwartz.
Under terms of the deal, Trilogy will pay $2.50 per share in cash to acquire all of the shares of Indigo Books that it doesn’t already own.
The purchase price represents a 25% premium over Indigo Book’s current share price of $2, making it a penny stock.
Indigo’s board of directors has recommended the company accept the offer from Heather Reisman’s husband.
It is now up to shareholders to vote in favour of the deal during a May vote that’s been scheduled.
Indigo Books said in a statement that it expects the purchase by Trilogy to close in June of this year and for its shares to then be delisted from the Toronto Stock Exchange.
Indigo Books is being taken private after years of mounting financial losses and a declining share price.
The company has also seen the resignation of several board members over the past 12 months.
Indigo Books’ stock has declined 80% over the last year and is down nearly 90% since the company went public in 1997.
