Catalyst Capital Group, Hudson's Bay's largest minority shareholder, has agreed to vote in favor of the deal, the retailer said in its statement on Friday.

It added that a special meeting of shareholders to approve the transaction will be held next month.

A consortium of Hudson's Bay investors led by its Executive Chairman Richard Baker approached the retailer's minority stockholders, including bidding rival Catalyst Capital, to potentially raise their take-private bid to around C$11 per share, from C$10.30, a source said last month.

(Reporting by Rama Venkat in Bengaluru; Editing by Himani Sarkar)