Home Capital Announces End of “Go-Shop” Period
03 Janeiro 2023 - 9:00AM
Business Wire
Home Capital Group Inc. (“Home Capital”) (TSX: HCG) today
announced the expiration of the go-shop period provided for in the
arrangement agreement dated November 20, 2022 pursuant to which a
wholly-owned subsidiary of Smith Financial Corporation (“SFC”), a
company controlled by Stephen Smith, has agreed to acquire the
issued and outstanding common shares of Home Capital that SFC does
not already own for $44.00 in cash per share, subject to increase
in certain circumstances (the “Arrangement”).
During the go-shop period, Home Capital was permitted, with the
assistance of its financial advisors, BMO Capital Markets and TD
Securities, to actively solicit, evaluate and enter into
negotiations with third parties that expressed an interest in
acquiring Home Capital. During the go-shop period, 38 potential
buyers were contacted. Three of the potential buyers entered into
confidentiality agreements with Home Capital and were granted
access to non-public information about Home Capital. Home Capital
did not receive an acquisition proposal during the go-shop
period.
Completion of the Arrangement is subject to obtaining the
required approval of Home Capital shareholders, court approvals and
the satisfaction or waiver of certain other conditions to
implementing the Arrangement, including receipt of regulatory
approvals under the Bank Act (Canada), Trust and Loan Companies Act
(Canada) and the Competition Act (Canada).
Caution Regarding Forward Looking
Statements
This press release contains forward-looking information within
the meaning of applicable Canadian securities legislation,
including relating to: whether, and when, the Arrangement will be
consummated and the anticipated receipt of required regulatory
approvals, including the timing thereof, and court and shareholder
approval. Such forward-looking information necessarily involves
known and unknown risks and uncertainties and assumptions. These
risks, uncertainties and assumptions include, but are not limited
to: the risk that the Arrangement will not be approved by Home
Capital shareholders; failure to, in a timely manner, or at all,
obtain the necessary court and required regulatory approvals for
the Arrangement and other customary risks associated with
transactions of this nature. Therefore, forward-looking information
should be considered carefully and undue reliance should not be
placed on such information. Please note that forward-looking
information in this news release reflects management’s expectations
as of the date hereof, and therefore is subject to change. Home
Capital disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
Please refer to Home Capital’s 2022 Third Quarter Report, available
on Home Capital’s website at www.homecapital.com, and on SEDAR at
www.sedar.com, for Home Capital’s Caution Regarding Forward-looking
Statements.
About Home Capital
Home Capital is a public company, traded on the Toronto Stock
Exchange (HCG), operating through its principal subsidiary, Home
Trust Company. Home Trust Company is a federally regulated trust
company offering residential and non-residential mortgage lending,
securitization of residential mortgage products, consumer lending
and credit card services. In addition, Home Trust Company and its
wholly owned subsidiary, Home Bank, offer deposits via brokers and
financial planners, and through a direct-to-consumer brand, Oaken
Financial. Licensed to conduct business across Canada, we have
offices in Ontario, Alberta, British Columbia, Nova Scotia, and
Quebec.
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version on businesswire.com: https://www.businesswire.com/news/home/20230103005116/en/
Home Capital Group Inc. Jill MacRae VP, Investor Relations and
ESG 416-933-4991 Investor.relations@hometrust.ca
Home Capital (TSX:HCG)
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