Toys “R” Us Canada Ltd. says it has received court approval in both Canada and the U.S. for Fairfax Financial Holdings Ltd. to take over the Canadian wing of the beleaguered retailer.
The Ontario Superior Court approval of Fairfax’s $300-million bid for the subsidiary comes after a U.S. court approved it earlier this week, while the transaction is still subject to customary closing conditions.
Fairfax had made a stalking horse offer last week, triggering an auction for Toys “R” Us’ 82 Canadian stores. It emerged as the only bidder.
The Toronto-based company’s bid surpassed the $215-million bid made earlier this month, outside of the auction, led by MGA Entertainment Inc. executive Isaac Larian.
Fairfax said earlier this week that it’s also looking for stores in the U.S. and elsewhere as the Toys “R” Us parent company looks to shut down operations after seeking bankruptcy protection.
The company said it was drawn to bidding on Toys “R” Us Canada both because of its $100-million in earnings before interest, taxes, depreciation and amortization and the real estate value of the stores themselves.