Home Capital Group Inc. Announces Preliminary Results of Substantial Issuer Bid
December 19 2018 - 6:00AM
Business Wire
Home Capital Group Inc. (“Home Capital” or the “Company”) (TSX:
HCG) announced today the preliminary results of its Substantial
Issuer Bid (the “Offer”) to repurchase for cancellation up to
C$300,000,000 of its common shares (the “Shares”).
In accordance with the terms and conditions of the Offer and
based on a preliminary count by Computershare Investor Services
Inc. (the “Depositary”), Home Capital expects to take up and
purchase for cancellation 18,181,818 Shares at a purchase price of
C$16.50 per Share (the “Purchase Price”). The Shares expected to be
purchased under the Offer represent approximately 22.7% of the
Shares issued and outstanding (undiluted) as at December 18, 2018.
After giving effect to the Offer, 62,064,531 Shares are expected to
be issued and outstanding.
“We are pleased that the strength of our balance sheet and our
business put us in a position to create value by returning this
capital to our shareholders,” remarked Yousry Bissada, President
and Chief Executive Officer of Home Capital. “This transaction
offered liquidity to the shareholders who participated while being
significantly accretive to the rest of our shareholders.”
“We will continue to return capital to our investors and are
proceeding with our previously announced intention to apply for a
Normal Course Issuer Bid immediately following the settlement of
the Offer,” Mr. Bissada added.
Shareholders had the opportunity under the Offer to tender
Shares until 5:00 p.m. (Eastern time) on December 18, 2018. The
Offer was made by way of a “modified Dutch auction” with Offer
prices ranging from C$16.50 to C$18.50 per Share. Based on
preliminary results, approximately 26 million Shares were tendered
under the Offer (including Shares tendered by notice of guaranteed
delivery). As the Offer was oversubscribed, shareholders who made
auction tenders at C$16.50 and purchase price tenders are expected
to have approximately 83% of their successfully tendered Shares
purchased by Home Capital, other than “odd lot” tenders, which are
not subject to proration.
The full details of the Offer are described in the offer to
purchase and issuer bid circular dated November 12, 2018, as well
as the related letter of transmittal and notice of guaranteed
delivery, copies of which were filed and are available on SEDAR at
www.sedar.com.
Columbia Insurance Company, a wholly-owned subsidiary of
Berkshire Hathaway Inc. (“Berkshire”) made a purchase price tender
of all of its Shares, representing approximately 19.99% of the
outstanding Shares. As a result, immediately following take-up of
the Shares, Berkshire is expected to hold less than 10% of the
outstanding Shares.
The number of Shares to be purchased under the Offer and the
Purchase Price and the proration factor are preliminary, subject to
verification by the Depositary and assume that all Shares tendered
through notice of guaranteed delivery will be delivered within the
two trading day settlement period. Home Capital will announce the
final results following completion of take-up of the Shares.
This news release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell Shares.
Caution Regarding Forward Looking
Statements
This press release contains forward-looking information within
the meaning of applicable Canadian securities legislation,
including relating to the Company’s completion of a substantial
issuer bid and the size of the substantial issuer bid. Please refer
to Home Capital’s 2017 Annual Report, available on Home Capital’s
website at www.homecapital.com, and on the Canadian Securities
Administrators’ website at www.sedar.com, for Home Capital’s
Caution Regarding Forward-looking Statements.
About Home Capital and Home
Trust
Home Capital Group Inc. is a public company, traded on the
Toronto Stock Exchange (HCG), operating through its principal
subsidiary, Home Trust Company (“Home Trust”). Home Trust is a
federally regulated trust company offering residential and
non-residential mortgage lending, securitization of insured
residential mortgage products, consumer lending and credit card
services. In addition, Home Trust offers deposits via brokers and
financial planners, and through a direct to consumer deposit brand,
Oaken Financial. Home Trust also conducts business through its
wholly owned subsidiary, Home Bank. Licensed to conduct business
across Canada, we have offices in Ontario, Alberta, British
Columbia, Nova Scotia, Quebec and Manitoba.
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version on businesswire.com: https://www.businesswire.com/news/home/20181219005222/en/
FOR ADDITIONAL INFORMATION:Jill MacRaeDirector, Investor
Relations416-933-4991jill.macrae@hometrust.ca
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