Home Capital Group Inc. (“Home Capital” or “the Company”) (TSX: HCG) today announces that it intends to launch a Substantial Issuer Bid (“SIB”) to repurchase for cancellation up to $150 million of its common shares. Subject to market and other conditions, the Company expects that the terms of the bid will be announced in the fourth quarter of 2019 and that the bid will be completed in the first quarter of 2020. Upon completion of the SIB, the Company intends to apply to the Toronto Stock Exchange (“TSX”) for a renewal of its Normal Course Issuer Bid.
“In the last 12 months we have completed a $300 million Substantial Issuer Bid and utilized $94.3 million to repurchase the maximum number of shares authorized under our Normal Course Issuer Bid. The shares repurchased under these two programs were acquired at an average discount of 40% to our third quarter 2019 book value of $28.64 per share. This clearly demonstrates Home Capital’s ability to increase shareholder value through share repurchases,” stated Brad Kotush, Executive Vice President and Chief Financial Officer. “Commencing another Substantial Issuer Bid in the fourth quarter of 2019 and renewing our Normal Course Issuer Bid in 2020 are part of our continuing commitment to return capital to shareholders.”
The Board of Home Capital will continue its ongoing review of various options for deployment of capital, including further share repurchases and payment of common share dividends.
Caution Regarding Forward Looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation, including relating to the Company’s intention to commence a Substantial Issuer Bid and the size, timing, and terms and conditions of the Substantial Issuer Bid. Please refer to Home Capital’s 2018 Annual Report, available on Home Capital’s website at www.homecapital.com, and on the Canadian Securities Administrators’ website at www.sedar.com, for Home Capital’s Caution Regarding Forward-looking Statements.
About Home Capital
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. 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 offers deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
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