TORONTO, June 29, 2017 /CNW/ - Home Capital Group Inc.
(TSX: HCG) ("Home Capital" or the "Company") is pleased to announce
it has received conditional listing approval from the Toronto Stock
Exchange ("TSX") for the previously announced initial equity
investment by Berkshire Hathaway Inc. ("Berkshire").
The parties are now able to proceed with the transaction,
subject to the satisfaction of the remaining customary closing
conditions.
"This investment from Berkshire Hathaway validates the
underlying strength of our business and marks another major step in
the rebuilding of confidence in the Company," said Brenda Eprile, Chair of the Board of Home
Capital. "Through this transaction and the other significant
actions we have undertaken, we are positioning Home Capital to
succeed."
Berkshire, through its wholly owned subsidiary Columbia
Insurance Company, will invest C$153,225,739 to acquire 16,044,580 common shares
of the Company on a private placement basis, representing an
approximate 19.99% equity stake in the Company on a post-issuance
basis. The initial equity investment is expected to close later
today.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information
within the meaning of applicable Canadian securities legislation,
including relating to the timing, completion and consequences of
the transactions described in this press release. Please refer to
the Home Capital's 2016 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 Group Inc.
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 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 its
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, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
About Berkshire Hathaway Inc.
Berkshire Hathaway and its subsidiaries engage in diverse
business activities including insurance and reinsurance, utilities
and energy, freight rail transportation, finance, manufacturing,
retailing and services. Common stock of Berkshire is listed on the
New York Stock Exchange, trading symbols BRK.A and BRK.B.
SOURCE Home Capital Group Inc.