Smith Financial signs deal to buy Home Capital Group for $44 per share

By The Canadian Press on November 21, 2022.

TORONTO – Mortgage lender Home Capital Group Inc. has signed a deal to be acquired by Smith Financial Corp. that values the company at $1.7 billion.

Under the agreement, Smith Financial will pay $44 in cash per share for the shares in Home Capital it does not already own.

Home Capital shares closed at $27.05 on the Toronto Stock Exchange on Friday.

Smith Financial, the family holding company of Stephen Smith, already owns a 9.1 per cent stake in Home Capital.

The deal requires approval by a two-thirds majority vote by Home Capital shareholders as well as court and regulatory approvals and other customary closing conditions.

The transaction is expected to close in the middle of 2023.

Companies in this story: (TSX:HCG)

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