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Home Capital Group Inc HMCBF


Primary Symbol: T.HCG

Home Capital Group Inc. is a Canada-based holding company that operates through its principal subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank offer deposits through brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Its mortgage lending includes classic single-family residential lending, insured residential lending, residential commercial lending, and non-residential commercial lending. Its consumer lending loan portfolio comprises credit cards, lines of credit and other consumer retail loans. In addition, the Company manages a treasury portfolio to support liquidity requirements and invest excess capital.


TSX:HCG - Post by User

Bullboard Posts
Comment by Simon868on Jun 29, 2017 11:46am
128 Views
Post# 26419581

RE:An interesting calculation.

RE:An interesting calculation.First of all it's not 50% discount.  Your're talking about current market value.  You're comparing apples to oranges and made it sounds worse than it is.  No one knows what the current market value of HCG would be now if BH didnt step in.  Shorts were calling for zero and spreading all sorts of rumors to make it happen.  Again trying to mislead with semi-accurate info.  At the time of the deal the first tranche is a 15% discount.  Obviously, when a solid company is struggling because of false rumor someone smart is going to step in and ask for a premium for the service. 

The second tranche is subject to shareholders approval. 

"Each common share will be issued at $9.55 per common share, which equals a 15 per cent discount to the five-day volume-weighted average price of the shares on the Toronto Stock Exchange as of June 13 when Bershire Hathaway, the firm led by famous American investor Warren Buffett, made its final proposal to the company."

https://www.macleans.ca/news/berkshire-hathaway-buys-into-home-capital/

Bullboard Posts