HOMEQ deal gets shareholder approval

HOMEQ deal gets shareholder approval

After some concern that a takeover of Canada’s leading provider of reverse mortgages might fall through, shareholders have given the $138 million deal their approval.

HOMEQ Corporation announced that holders of HOMEQ common shares voted in favour of the arrangement under which Birch Hill Equity Partners will indirectly acquire all of the outstanding common shares of HOMEQ for cash at a price of $9.50 per common share.

HOMEQ expects that the deal will be completed in the third quarter of 2012.

“We believe that Birch Hill is an excellent fit for HOMEQ, enabling us to address our expanding liquidity and capital needs. We want to thank all of our shareholders for their support in favour of this transaction and of course for their support over the years,” said HOMEQ president and CEO Steven Ranson.

About 80 per cent of the votes cast were in favour of the transaction. Excluding votes cast by funds managed by Maxam Opportunities, which had opposed the transaction, the vote was 97 per cent in favour of the deal.