Indigo shareholders approve privatization

Move allows book retailer to avoid scrutiny as it works to return to profitability and growth

- TARA DESCHAMPS

Indigo Books & Music Inc. shareholders have voted to approve a deal that will see the retailer become a private company.

Shareholders voted Monday in favour of a $2.50 per share offer from Trilogy Retail Holdings Inc. and Trilogy Investments L.P., which have a 56 per cent stake in Indigo and are owned by Gerald Schwartz, the spouse of Indigo chief executive Heather Reisman.

The Trilogy companies originally offered $2.25 per share but raised their bid in April.

"We are pleased with the result of today's vote and look forward to continuing our work on Indigo's transformation strategy," Reisman said in a statement following the vote.

"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."

Shareholders voted for $2.50 per share offer from Trilogy Retail Holdings Inc.and Trilogy Investments L.P., owned by spouse of Indigo CEO

Indigo spokesperson Madison Downey said in an email to the Canadian Press that Trilogy would not be commenting on the vote.

For Trilogy's offer to be accepted, it required approval by a two-thirds majority vote of Indigo shareholders and a simple majority vote by shareholders not linked to Trilogy and its affiliates.

Some 95.09 per cent of votes from shareholders represented at the meeting Monday were in favour of accepting the deal. Just shy of 83 per cent of the votes from shareholders not linked to Trilogy and affiliates were in support of the offer.