Home Capital Group Inc. announces final results of substantial issuer bid

TORONTO, April 18, 2016 /CNW/ - Home Capital Group Inc. ("Home Capital" or the "Company") (TSX: HCG) today announced that it has taken up and paid for 3,989,361 common shares (the "Shares") at a price of C$37.60 per Share (the "Purchase Price") under the Company's previously announced substantial issuer bid (the "Offer") to repurchase for cancellation up to C$150,000,000 of its Shares. The Shares purchased under the Offer represent approximately 5.70% of the Shares outstanding as at March 8, 2016. After giving effect to the repurchase, the number of issued and outstanding Shares is 65,976,819 (undiluted). None of the directors or management of the Company tendered any of their Shares pursuant to the Offer.

Shareholders had the opportunity under the Offer to tender shares until 5:00 p.m. (Eastern time) on April 15, 2016. The Offer was made by way of a "Dutch auction" with Offer prices ranging from C$34.00 to C$38.00 per Share. 

A total of 6,164,311 Shares were properly tendered to the Offer and not withdrawn. As the Offer was oversubscribed, successfully tendering shareholders will have 98.56% of their successfully tendered Shares purchased by Home Capital, other than "odd lot" tenders, which are not subject to pro-ration.

Payment for the purchased Shares will be effected by Computershare Investor Services Inc. (the "Depositary") in accordance with the Offer and applicable law commencing on or about April 25, 2016. Any Shares tendered and not purchased will be returned to shareholders promptly by the Depositary.

Home Capital designates the entire amount of the deemed dividend arising from its repurchase of the Shares as an eligible dividend. Dividends are designated to be eligible dividends pursuant to the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.

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 residential and non-residential mortgage lending, securitization of insured residential first 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, CFF Bank. 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: Gerald M. Soloway, CEO, or Martin Reid, President, 416-360-4663, www.homecapital.com


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