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Home Capital Receives Final Regulatory Approvals, Sets Closing Date for Acquisition by Smith Financial Corporation

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Home Capital Receives Final Regulatory Approvals and Sets Closing Date for Acquisition by Smith Financial Corporation

Home Capital Group Inc. (TSX: HCG) is pleased to announce that it has received the required regulatory approvals under the Bank Act (Canada) and Trust and Loan Companies Act (Canada) for the acquisition of Home Capital by Smith Financial Corporation (SFC). The acquisition, known as the Arrangement, is expected to be completed on August 31, 2023, pending the satisfaction of customary closing conditions.

Acquisition Details

Under the Arrangement, SFC will acquire the outstanding common shares of Home Capital that it does not already own for a cash price of $44.00 per share. Since the Arrangement did not close by May 20, 2023, the Purchase Price will be increased by $0.00273973 per share in cash per day, resulting in a final Purchase Price of $44.28 per share upon completion on August 31, 2023.

Annual Shareholder Meeting and Dividend

Due to the expected completion of the Arrangement before September 29, 2023, Home Capital will not hold its annual shareholder meeting, for which it previously obtained an exemption. Additionally, shareholders will not receive the previously announced quarterly dividend of $0.15 per common share on September 15, 2023.

Forward-Looking Statements

Home Capital advises caution regarding forward-looking statements, as they involve known and unknown risks, uncertainties, and assumptions. The company disclaims any intention or obligation to update or revise any forward-looking information, except as required by law. In conclusion, Home Capital's receipt of final regulatory approvals and the set closing date for the acquisition by Smith Financial Corporation mark significant milestones in the completion of the Arrangement. The company looks forward to finalizing the acquisition and moving ahead with its strategic plans.

A Fresh Perspective on the Home Capital Acquisition by Smith Financial Corporation

The announcement of Home Capital Group's acquisition by Smith Financial Corporation (SFC) is a significant development in the financial sector. This move, which has received the necessary regulatory approvals, could have substantial implications for new businesses, particularly those in the financial industry.

Implications of the Acquisition

The acquisition's details reveal a strategic move by SFC to consolidate its position in the market by acquiring all outstanding common shares of Home Capital. This could potentially lead to a shift in the competitive landscape, as the combined strength of Home Capital and SFC could create a formidable player in the industry. New businesses need to be aware of these shifts and adapt their strategies accordingly.

Impact on Shareholders and Dividends

The decision to forego the annual shareholder meeting and the previously announced quarterly dividend due to the impending completion of the acquisition could be a cause for concern for some stakeholders. New businesses must take note of how such decisions can impact investor relations and shareholder confidence.

Forward-Looking Statements and Their Significance

Home Capital's caution regarding forward-looking statements underscores the inherent uncertainties in business. New businesses should take this as a reminder to always factor in potential risks and uncertainties in their strategic planning. In conclusion, the Home Capital acquisition by SFC is a significant event with potential implications for the broader financial industry and new businesses within it. It highlights the importance of strategic planning, stakeholder management, and risk awareness in business operations.
Story First Published at: https://financialpost.com/pmn/business-wire-news-releases-pmn/home-capital-announces-receipt-of-final-regulatory-approvals-and-expected-closing-date-for-acquisition-by-smith-financial-corporation
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