Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Home Capital Group Inc. (HCG-T) announced that it has signed a deal to be acquired by Smith Financial Corp. that values the company at $1.7-billion.
Under the agreement, Smith Financial said Monday it will pay $44 in cash per share for the shares in Home Capital it does not already own.
Home Capital shares closed at $27.05 on the Toronto Stock Exchange on Friday.
Smith Financial, the family holding company of Stephen Smith, already owns a 9.1 per cent stake in Home Capital.
“Having followed the development of the business for three decades, I can attest to Home Capital’s strong partnerships with mortgage brokers and great customer relationships,” Smith said in a statement.
“I’m also impressed with the direction the company has taken to build quality assets and enduring advantages in its chosen industry segments. I look forward to owning another business with a bright future.”
The deal, which is expected to close in the middle of 2023, requires approval by a two-thirds majority vote of Home Capital shareholders as well as court and regulatory approvals and other customary closing conditions.
Home Capital chair Alan Hibben said the board conducted a thorough review of the proposal and concluded it was in the best interests of the company and fair to shareholders.
“We are pleased to have reached an agreement that provides shareholders with compelling and certain value in the form of an all-cash offer,” Hibben said.
In August, Home Capital rejected an unsolicited, non-binding and conditional takeover offer from what it said was an arms-length third party.
The company did not release specific details of the earlier proposal but said it was an all-cash offer and topped the maximum purchase price of $28.60 per share offered under its substantial issuer bid.
Home Capital said at the time that the offer undervalued its shares and fell short of reflecting the company’s intrinsic value and its future growth potential.
- The Canadian Press
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dentalcorp Holdings Ltd. (DNTL-T) announced that its board had formed a special committee of non-executive, independent directors to review strategic alternatives that may be available to the company to unlock shareholder value.
“Our management team is fully aligned with the board’s decision to explore options to maximize shareholder value, including in response to unsolicited expressions of interest that have been received,” said Graham Rosenberg, CEO and board chair.
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Kingsway Financial Services Inc. (KFS-T) announced the acquisition of the privately held company Secure Nursing Service, Inc., based in Los Angeles, for $10.9-million.
“The acquisition of SNS marks Kingsway’s third business acquisition under the Kingsway Search Xcelerator program,” stated CEO J.T. Fitzgerald. “The business meets our criteria of recurring revenue, strong margins, and low capital demands, making it a great fit for our model.”
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Poet Technologies Inc. (POET-X) announced a non-brokered private placement of up to 1,798,561 units for $3.81 each for total proceeds of up to approximately $6.85-million.
Each unit includes one common share and one-half of one common share purchase warrant exercisable at $4.95 per share for three years.
The net proceeds will be used for general corporate purposes, the company stated.