TORONTO, Sept. 20, 2012 /CNW/ - As previously announced, Birch Hill
Equity Partners ("Birch Hill") has applied to the Minister of Finance
for approval to complete the shareholder-approved Arrangement (the
"Arrangement") under the Business Corporations Act (Ontario) by which Monaco Acquisition Inc., an entity controlled by
Birch Hill, will acquire all of the outstanding common shares of HOMEQ
Corporation [TSX:HEQ ("HOMEQ")] for cash at a price of $9.50 per common
share. Approval of the Minister under the Bank Act is required as HOMEQ's subsidiary, HomEquity Bank, is a regulated
financial institution and it is the remaining significant condition to
be satisfied in order to complete the Arrangement.
Birch Hill and HOMEQ's objective was to secure regulatory approval in
the third quarter of 2012. Both companies have been working steadily
towards that objective and continue to believe that the application
will be successful. As disclosed previously the final outcome and
timing of approval of the application is at the discretion of the
Minister of Finance and the companies now expect that if approved,
completion of the Arrangement will occur after the end of the third
Following completion of the Arrangement it is anticipated that HOMEQ
shares will be delisted from the Toronto Stock Exchange and HOMEQ will
apply to cease to be a reporting issuer.
HOMEQ's wholly owned subsidiary HomEquity Bank is the only national
provider of reverse mortgages to homeowners aged 55 and over, Canada's
fastest growing demographic segment. HomEquity Bank originates and
administers Canada's largest portfolio of reverse mortgages under the
CHIP Home Income Plan brand. As of June 30, 2012, the mortgage
portfolio comprised approximately 9,300 reverse mortgages with an
accrued value of $1.3 billion, secured by residential properties across
Canada worth approximately $3.4 billion. HomEquity Bank has been the
main underwriter of reverse mortgages in Canada since its predecessor,
Canadian Home Income Plan, pioneered the concept in 1986. HOMEQ's
shares trade on the Toronto Stock Exchange under the symbol HEQ.
Additional information on HOMEQ, including annual and quarterly reports
can be viewed at www.homeq.ca.
About Birch Hill
With $2 billion in capital under management, Birch Hill has invested in
more than 50 investments since 1994. Birch Hill is the leader in
long-term value creation in the Canadian mid-market. For more
information about Birch Hill Equity Partners, please visit www.birchhillequity.com.
Certain statements included herein constitute "forward-looking
statements". All statements, other than statements of historical fact,
included in this release that address future activities, events,
developments or financial performance are forward-looking statements.
These forward-looking statements can be identified by the use of
forward-looking words such as "may", "should", "will", "could",
"expect", "intend", "plan", "estimate", "anticipate", "believe",
"future" or "continue" or the negative thereof or similar variations.
In particular, statements about the proposed Arrangement between Birch
Hill and HOMEQ, including the expected timetable for completing the
Transaction, the receipt of regulatory approvals and any other
statements regarding HOMEQ's future expectations, beliefs, goals or
prospects are or involve forward-looking information. These
forward-looking statements are based on certain assumptions and
analyses made by HOMEQ and its management, in light of their
experiences and their perception of historical trends, current
conditions and expected future developments, as well as other factors
they believe are appropriate in the circumstances. Shareholders are
cautioned not to put undue reliance on such forward-looking statements,
which are not a guarantee of performance and are subject to a number of
uncertainties, assumptions and other factors, many of which are outside
the control of Birch Hill and HOMEQ, that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. Important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements include, among other things, the parties'
ability to consummate the Arrangement; the parties' ability to satisfy
the conditions to the completion of the Arrangement, including that the
receipt of regulatory approval for the Arrangement may not be obtained,
or may not be obtained on the terms expected or on the anticipated
schedule; general economic and market factors (including changes in
global, national or regional financial, credit, currency or securities
markets), changes or developments in global, national or regional
political conditions (including any act of terrorism or war), changes
in government laws or regulations (including tax laws) and changes in
GAAP or regulatory accounting requirements. Readers are cautioned that
the foregoing lists are not exhaustive.
Such forward-looking statements should, therefore, be construed in light
of such factors. If any of these risks or uncertainties were to
materialize, or if the factors and assumptions underlying the
forward-looking information were to prove incorrect, actual results
could vary materially from those that are expressed or implied by the
forward-looking information contained herein. All forward-looking
statements attributable to HOMEQ, or persons acting on its behalf, are
expressly qualified in their entirety by the cautionary statements set
forth above. Readers are cautioned not to place undue reliance on
forward-looking statements contained herein, which reflect the analyses
of the management of HOMEQ, only as of the date of this release.
For more information regarding these and other risks, readers should
consult HOMEQ's reports on file with applicable securities regulatory
authorities accessible online by going to SEDAR at www.sedar.com or by going to the HOMEQ website at www.homeq.ca. HOMEQ is under no obligation, and HOMEQ expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable law.
SOURCE: HOMEQ Corporation
For further information:
Steven Ranson, President and Chief Executive Officer, (416) 413-4663 or
Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679.