An Ontario court has given the green light to Hudson's Bay Company's plan to auction its historic Royal Charter, a 1670 document that granted the company exclusive trading rights over vast portions of what would become Canada. The approval comes after months of legal proceedings and competing bids from some of Canada's wealthiest families.
Court Approval After Complex Proceedings
Justice Peter Osborne of the Ontario Superior Court of Justice approved the auction process on Thursday, noting the case had experienced several twists and turns before reaching this point. The judge acknowledged the unique nature of the case, emphasizing that the Royal Charter's historical significance extends beyond the immediate parties to the proceedings.
While the maximization of value for shareholders and stakeholders is rather important, so, too, is the preservation of the charter, maintaining it in Canada and ensuring the continued accessibility of the charter to Canadians, Justice Osborne stated in his ruling. He expressed satisfaction that the proposed auction process would achieve all these objectives.
Protections for Canadian Heritage
The auction process includes specific safeguards to ensure the 353-year-old document remains in Canada and accessible to the public. According to HBC lawyer Ashley Taylor, any successful bidder must irrevocably commit to permanently donate the charter immediately upon closing of the purchase to one or more Canadian public institutions.
This requirement addresses concerns about the potential loss of a significant piece of Canadian history. The Royal Charter represents the founding document that established Hudson's Bay Company and played a crucial role in the early development of Canada's fur trade and territorial expansion.
Joint Bid from Canada's Wealthiest Families
Two prominent Canadian companies have joined forces to submit what will serve as the opening bid in December's auction. Wittington Investments Ltd., owned by the Weston family, and DKRT Family Corp., controlled by David Thomson, Canada's richest person, have teamed up to offer at least $18 million for the historic document.
The joint bid represents a significant increase over previous separate offers. In June, HBC had reached a $12.5 million deal to sell the charter to Wittington, but that agreement was superseded in August when DKRT submitted a bid of at least $15 million.
The collaboration between these two powerful business families emerged after HBC sought court approval for an auction on September 29. The company subsequently requested an adjournment when it received the new joint proposal.
Enhanced Commitment to Public Access
The Wittington-DKRT partnership has committed to donating the charter to a consortium of four Canadian public institutions if their bid succeeds. The proposed recipients include:
- Archives of Manitoba
- Manitoba Museum
- Canadian Museum of History
- Royal Ontario Museum
Additionally, the joint bidders have promised to donate $5 million to fund stewardship, consultation, education and public access related to the charter. This represents a substantial increase over the separate commitments of $2 million from DKRT and $1 million from Wittington in their individual bids.
Other interested parties have until November 28 to submit their proposals for the auction, which is scheduled for the first week of December. The sale of the Royal Charter represents just one component of HBC's efforts to repay creditors after the company sought court protection earlier this year. The former retailer has also sold its intellectual property rights and leases as part of the restructuring process.
