TORONTO, Feb. 12, 2014 /CNW/ - Home Capital Group Inc. (TSX: HCG) is
pleased to announce that its Board of Directors has approved a stock
dividend of one common share per each issued and outstanding common
share, which has the same effect as a two-for-one split of the common
The stock dividend will be paid on March 10, 2014 to shareholders of
record at the close of business on February 28, 2014. Share
certificates representing common shares issued pursuant to the stock
dividend will be mailed to Home Capital's registered shareholders on or
about March 10, 2014. Non-registered shareholders' brokerage accounts
will be credited for the additional shares representing the stock
dividend on or about March 10, 2014. The stock dividend will
effectively have no unfavourable tax consequences for Canadian
shareholders or the Company.
Home Capital's common shares will be traded in accordance with the "due
bill" procedures of the Toronto Stock Exchange (TSX) from February 26,
2014 through March 10, 2014. This means any trades that are executed on
the TSX during this period will be identified to ensure purchasers of
Home Capital's common shares receive the entitlement to the stock
dividend. Home Capital's common shares are expected to begin trading on
an ex-dividend basis, without an attached due bill entitlement to the
stock dividend, on the TSX on March 11, 2014. The due bill redemption
date will be March 13, 2014.
The stock dividend will increase the number of Home Capital's
outstanding common shares from 34,744,090 to 69,488,180. Home Capital
is undertaking the stock dividend to provide greater liquidity to Home
Capital shareholders, increase and broaden Home Capital's shareholder
base, and improve accessibility to Home Capital stock.
Home Capital's Board of Directors has also approved the payment of a
quarterly dividend of 32.0 cents per share on the outstanding common
shares of the Company. This represents a 4.0 cent per share increase in
its quarterly dividend and is equivalent to an annual dividend of $1.28
per share. The dividend increase reflects the continuing success of
Home Capital's operating subsidiaries, Home Trust Company and PSiGate.
The dividend is payable on March 1, 2014 to shareholders of record at
the close of business on February 24, 2014 and will be paid on shares
outstanding prior to the payment of the stock dividend.
The quarterly dividend on the common shares is designated as an
"eligible" dividend for the purposes of the Income Tax Act (Canada) and
any similar provincial legislation.
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 is a federally regulated trust company offering
deposit, residential and non-residential mortgage lending,
securitization of insured residential first mortgage products, consumer
lending, Visa and payment card services. Licensed to conduct business
across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE: Home Capital Group Inc.
For further information:
FOR ADDITIONAL INFORMATION:
Gerald M. Soloway, CEO, or
Martin Reid, President