TORONTO, Nov. 8, 2012 /CNW/ - HOMEQ Corporation ("HOMEQ") (TSX: HEQ)
today announced that Birch Hill Equity Partners Management Inc. ("Birch
Hill") has received approval from the Minister of Finance that will
enable the completion of 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
In accordance with the terms of the Arrangement, HOMEQ shareholders will
receive $9.50 in cash per common share. It is anticipated that the
acquisition will close on or before November 30, 2012.
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 Equity Partners
With $2 billion in capital under management, 20 partner companies and 30
fully realized 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 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 Birch Hill and HOMEQ and
their respective managements, 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; 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 analysis
of the management of Birch Hill or HOMEQ, as appropriate, 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 each of HOMEQ and Birch Hill
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 K. Ranson, President and Chief Executive Officer, (416) 413-4663 or
Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679