The parent company of HomEquity Bank has recommended the sale of HOMEQ Corporation for approximately $138 million.
HOMEQ Corporation announced that it has entered into an arrangement agreement 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 share.The $9.50 per Share consideration represents a 22 per cent premium over the volume-weighted average price of the shares over the last 20 trading days on the Toronto Stock Exchange.
The Board has recommended that shareholders of HOMEQ vote in favour of the arrangement.
“We are delighted that Birch Hill has recognized the inherent value in our business,” said Chairman of the Board, Gary Samuel. “We believe that the all-cash offer is highly attractive to existing shareholders. Birch Hill’s long-term track record of successfully investing in Canadian mid-market companies, and its ability to support HOMEQ’s strategic initiatives, will assist HOMEQ in reaching its full potential and achieving its growth plans.”
“Over the last three years we have achieved extremely encouraging volumes of mortgage originations and growth in our portfolio”, added President and Chief Executive Officer, Steven Ranson. “Our new ownership structure will provide us with a reliable source of capital, enabling us to serve the financial needs of the burgeoning ranks of seniors, Canada’s fastest growing demographic.”
“We are excited about the prospect of participating in HOMEQ’s future growth opportunities and the chance to build a leading financial services company focused on the needs of Canada’s expanding population of seniors,” stated John MacIntyre, partner at Birch Hill.