Home Capital — the mortgage lender bailed out by Buffett — is being bought by Smith Financial

Home Capital Group Inc., the Toronto-based alternative mortgage lender that survived a regulatory probe and short-seller campaign before being bailed out by Warren Buffett’s Berkshire Hathaway in 2017, is being acquired by Smith Financial Corp. in a deal that values the company at $1.7 billion.controlled by Canadian businessman Stephen Smith represents a 63 per cent premium to Friday’s closing price and a 72 per cent premium to the 20-day volume-weighted average trading price.

But the stock had climbed back significantly from the company’s rockiest years between 2015 and 2017. When the OSC made allegations of misleading disclosure against the company in the spring of 2017, customers began to pull deposits from Home Capital’s high-interest savings accounts and GICs, which helped fund the company’s mortgage lending.

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Smith Financial signs deal to buy Home Capital Group for $44 per share - BNN BloombergMortgage lender Home Capital Group Inc. has signed a deal to be acquired by Smith Financial Corp. that values the company at $1.7 billion. Wow. $44 per share in cash. A 70% premium. This is why short selling is a bad idea and can get crushed. Smith is a GOAT
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Mortgage Lender Home Capital to be Acquired by Smith FinancialSmith Financial already owns 9.1% of Home Capital shares, and the deal values the remainder at $1.7B. hometrustco | realestate realestatenews finance
Source: storeyspub - 🏆 16. / 74 Read more »