TORONTO, June 29, 2017 /CNW/ - Home Capital Group
Inc. (TSX: HCG) ("Home Capital" or the "Company") is pleased to
announce the completion of the previously announced initial equity
investment by Berkshire Hathaway Inc. ("Berkshire"). Berkshire,
through its wholly owned subsidiary Columbia Insurance Company,
invested C$153,225,739 to acquire
16,044,580 common shares on a private placement basis, representing
an approximate 19.99% equity stake in the Company on a
post-issuance basis.
"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."
As previously announced, Berkshire has agreed to make an
additional investment of C$246,774,261 to acquire 23,955,420 common shares
on a private placement basis, which, together with its initial
investment, would represent an approximate 38.39% equity stake in
the Company. The additional investment will be subject to approval
by not less than a majority of the votes cast by the Company's
shareholders (excluding the common shares beneficially held by
Berkshire, or over which it exercises control or direction) at a
special meeting of shareholders that is expected to take place by
September 2017. The additional
investment is also subject to Canadian Competition Act clearance
and other customary closing conditions.
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 and completion 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.