TORONTO, Sept. 12, 2013 /CNW/ - Home Capital Group Inc. (TSX: HCG) announced today that it has filed with the Toronto Stock Exchange a Notice of Intention to make a Normal Course Issuer Bid, as approved by Home Capital's Board of Directors, pursuant to which Home Capital may purchase for cancellation up to 3,189,788 of its Common Shares, representing approximately 10.0% of its 31,897,875 public float of issued and outstanding Common Shares. As of September 10, 2013, there are 34,733,590 Common Shares outstanding. The average daily trading volume from March 1, 2013 to August 31, 2013 was 137,247 shares. Daily purchases will be limited to 34,311 Common Shares, other than block purchase exceptions. The purchases may commence on September 16, 2013, and will terminate on September 15, 2014, or on such earlier date as Home Capital may complete its purchases pursuant to the Notice of Intention. The purchases made by Home Capital will be effected through the facilities of TSX and in accordance with the rules of TSX. The price that Home Capital will pay for any Common Shares will be the market price of such shares at the time of acquisition. Home Capital will make no purchases of Common Shares other than open-market purchases.
Pursuant to its Normal Course Issuer Bid for Common Shares commencing September 15, 2012, which expires September 14, 2013, Home Capital purchased 92,400 shares at a weighted average price of $55.33 per share.
Home Capital believes that, from time to time, the market price of its Common Shares does not fully reflect the value of its business and its future business prospects. As a result, Home Capital believes that its outstanding Common Shares may represent an appropriate and desirable use of its available funds.
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 deposit, residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending, Visa and payment card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.