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.
For further information: Media: Boyd Erman, Longview Communications Inc., (416) 649-8007, [email protected]; or Peter Block, Longview Communications Inc., (416) 649-8008, [email protected]; Investors: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652, [email protected]