Canadian mortgage lender Home Capital hits 11-month high on C$1.7 bln deal

Hocheng

21/11/2022 15:49

** Shares of Canadian mortgage lender Home Capital Group Inc
 HCG.TO  soar ~57% to 11-month high of $42.45
    ** Co agrees to be taken private for C$1.7 billion ($1.26
billion) by financial entrepreneur Stephen Smith's family office
Smith Financial Corp 
    ** HCG stock approaches all-cash deal price of C$44 per
share, which was ~63% higher than its Friday close
    ** The deal comes as small lenders struggle in Canada
against the Big Six banks with a larger market share and rising
borrowing costs
    ** HCG's deal includes a "go-shop" period which allows co to
look for other offers till Dec 30 
    ** Deal is expected to close before May 20, post which
announced shareholders will be entitled to an extra payment of
25 Canadian cents/shr for every 3 months of delay, according to
deal terms
    ** YTD, the stock is up ~9% including session moves  
($1 = 1.3449 Canadian dollars)
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))