Home Capital launches buyback plan

Article Excerpt

HOME CAPITAL GROUP INC. $17 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares o/s: 80.3 million; Market cap: $1.4 billion; Price-to-sales ratio: 3.5; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) plans to buy back up to $300 million of its shares through a Dutch auction. Under the offer, shareholders who want to sell their Home Capital shares must offer them for between $16.50 and $18.50 before December 18, 2018. The final price will be the lowest amount within that range at which Home Capital can buy the maximum number of shares for $300 million. The company will then pay that price for all shares tendered at or below it. If you tender at a higher price, Home Capital will return your shares. The transactions are commission-free. If you are thinking about selling, or hold less than 100 shares, you may wish to tender at the top price of $18.50. Home Capital is still a hold. hold…

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