The acquisition of the lending giant has cleared its final hurdle
The purchase of Home Capital Group by Smith Financial Corporation has gone ahead, with the parent company of mortgage lender Home Trust announcing the closure of the deal this afternoon.
The blockbuster acquisition, which had spent some time going through regulatory approval, sees Smith Financial purchase the issued and outstanding shares of the lending giant that it did not already own, with the per-share cash price coming in at $44.28.
In April, the deal cleared a major hurdle with the Commissioner of Competition’s issuance of a “no-action letter” in relation to the sale, which placed the company’s value at $1.7 billion.
The acquisition was first announced last November and approved by shareholders in February of this year.
With the successful conclusion of the acquisition transaction, Home Capital is pleased to now be a part of the Smith Financial Corporation family. See the press release for more information: https://t.co/netuMP5Kqv #HomeHappensHere pic.twitter.com/KMqhk3n86g— Home Trust Company (@hometrustco) August 31, 2023
Smith Financial – headed by founder and CEO Stephen Smith – has a significant presence across Canada’s mortgage market, with sizeable equity positions in companies including First National, Equitable Bank, and Canada Guaranty Mortgage Insurance Company.
Smith said the strength of Home Capital’s brand among mortgage brokers was one of the central reasons behind the acquisition.
“Home Capital is a strategic holding for us, and we will give our support to preserve, protect and advance Home’s place in the industry under its dedicated leadership,” he added in remarks accompanying the news.
The move will likely see Home Capital’s common shares delisted from the Toronto Stock Exchange in the coming days, the company said, with Home Capital also set to apply to end its status as a reporting issuer under relevant Canadian securities laws.