“The offer not only has been made, it has been approved and accepted as of last Thursday; It’s not only approved by the directors, but by 80% of the shareholders as well,” maintained Gerald Soloway, CEO of Home Capital Group Inc., in speaking to MortgageBrokerNews.ca. “We’re just going full tilt ahead to close the transaction and we are highly confident.”
According to Soloway, Canadian First Financial must share the competing offer if it is going to consider it.
That competing offer was made by Westbridge Structured Mortgage Credit Corp. and was officially announced Monday. If Westbridge’s competing offer is accepted, the lender plans on installing James Clayton, the former CFF Bank executive and the founder of CFF forerunner MonCana Bank, at the helm.
"I do believe this to be the sort of transformational partnership that significantly alters CFF Bank’s prospects by taking the Bank back to the basics through the addition of depth, scale and intensity to the Bank’s business model and through a shift in focus back to profitable and sustainable lending growth,” said JD Diabira, chief executive officer of Westbridge, said in a release shared with MortgageBrokerNews.ca Monday. “What we are offering CFF Bank’s shareholders is a truly compelling blueprint for further growth in earnings.”
And while the company has already expressed its commitment to brokers in the channel, it has also appealed to CFF shareholders.
“Our business model is based on a sustainable market and product expansion, an unrivalled customer-centric execution and high-quality risk management,” Diabara said. “Our value proposition takes into account the requirements of shareholders, debenture holders, regulatory agencies as well as that of the current CFF Centres.”
Canadian First Financial is currently mulling over two offers, but the CEO of Home Capital believes its original bid will win out.