Indigo Books soars on takeout offer

Indigo Books (Indigo Books Stock Quote, Chart, News, Analysts, Financials TSX:IDG) is leading the TSX today following a takeout offer.

The company today announced it had received an offer to buy all the shares of the remaining shares of the company the it does not own for $2.25 from Trilogy Retail Holdings Inc. (TRHI) and Trilogy Investments LP. Trilogy currently owns 60.6 per cent of the company.

“The board will review the proposal to determine the course of action that it believes is in the best interest of the company. The board has established a special committee of independent directors that will evaluate the proposal and any viable alternatives that may be available to the company and make recommendations to the board. The special committee will supervise the preparation of a formal valuation by an independent valuator regarding the proposal,” the company said.

Indigo recently saw the return of founder Heather Reisman, who returned to the company as CEO in September of last year. Reisman is the wife of Gerry Schwartz, who controls Trilogy.

“There is a clear path for Indigo to regain its momentum,” Reisman said at the time. “I love this company and its mission. Even more, I care deeply about our people, who have given so much to build this incredible company over more than two and a half decades. I know that together we will return Indigo to growth and profitability. I’m thrilled for both Indigo and for Craig Loudon about his promotion to COO. Craig has not only the institutional knowledge and experience to support me and our entire team in his new role, he has also been a trusted partner for our employees, our suppliers and our shareholders for a long time.”

At press time, shares of Indigo were up 47.3 per cent to $2.18.