Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Birch Hill Equity Partners To Acquire HOMEQ - Quick Facts

3/30/2012 6:50 PM ET

HOMEQ Corp.(HEQ.TO: Quote) announced that it has entered into an arrangement agreement under which Birch Hill Equity Partners will indirectly acquire all of the outstanding common shares of HOMEQ for cash at a price of $9.50 per Share representing total equity value, on a fully diluted basis, of approximately $138 million.

The $9.50 per Share consideration represents a 22% premium over the volume-weighted average price of the Shares over the last 20 trading days on the Toronto Stock Exchange.

HOMEQ said itsBoard has recommended that shareholders of HOMEQ vote in favour of the Arrangement.

If the Arrangement Agreement is terminated in certain circumstances, including if HOMEQ enters into an agreement with respect to a superior proposal or if the Board withdraws its recommendation with respect to the Arrangement, Birch Hill is entitled to a termination payment of $5 million. HOMEQ is entitled to a reverse break fee of $7.5 million if the Arrangement Agreement is terminated in certain circumstances, and to a reverse break fee of $5 million in other circumstances.

The company said that the dividend payable to shareholders of record on March 29, 2012, will be paid as scheduled on April 13, 2012. Thereafter, no further dividends will be declared.

Register
To receive FREE breaking news email alerts for HOMEQ Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Justin Moore has been named Humanitarian of the Year by by the Armed Forces Foundation. Moore received the award alongside Big Machine Label Group President/CEO Scott Borchetta for their service and commitment to the morale and welfare of military families through the Crown Royal "Your Hero's Name Here" contest. International Business Machines Corp. said Wednesday after the markets closed that its first quarter profit fell 21% from last year, hurt by lower revenue as well as a hefty workforce rebalancing charge. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Stocks moved sharply higher over the course of the trading day on Wednesday, further offsetting the steep losses posted late last week. The markets benefited from a positive reaction to the latest earnings news as well as remarks by Federal Reserve Chairman Janet Yellen. The major averages saw further upside going into the close, ending the session at their best levels of the day.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.