Home Capital rejects unsolicited, non-binding and conditional takeover offer

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TORONTO — Home Capital Group Inc. says it has received an unsolicited, non-binding and conditional takeover offer which its board has decided is not in the best interests of the company or its shareholders.

The mortgage lender says the board has determined the offer undervalues its shares and falls short of reflecting Home Capital’s intrinsic value and its future growth potential.

Home Capital did not release specific deals of the proposal, but said it was an all cash offer and topped the maximum purchase price of $28.60 per share offered under its substantial issuer bid announced last week.

It also did not identify who made the offer, but says the third party, in conjunction with another group, previously made an unsolicited, non-binding proposal to acquire the company.

Home Capital says the non-binding expression of interest was subject to a number of conditions, including the completion of satisfactory due diligence, negotiation of a definitive agreement and receipt of all required regulatory and shareholder approvals.

It also required that the issuer bid not be completed.

This report by The Canadian Press was first published Aug. 15, 2022.

Companies in this story: (TSX:HCG)

The Canadian Press