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Home Capital Group Inc. Announces Preliminary Results of Substantial Issuer Bid

December 19, 2018

TORONTO--(BUSINESS WIRE)--Dec 19, 2018--Home Capital Group Inc. (“Home Capital” or the “Company”) (TSX: HCG) announced today the preliminary results of its Substantial Issuer Bid (the “Offer”) to repurchase for cancellation up to C$300,000,000 of its common shares (the “Shares”).

In accordance with the terms and conditions of the Offer and based on a preliminary count by Computershare Investor Services Inc. (the “Depositary”), Home Capital expects to take up and purchase for cancellation 18,181,818 Shares at a purchase price of C$16.50 per Share (the “Purchase Price”). The Shares expected to be purchased under the Offer represent approximately 22.7% of the Shares issued and outstanding (undiluted) as at December 18, 2018. After giving effect to the Offer, 62,064,531 Shares are expected to be issued and outstanding.

“We are pleased that the strength of our balance sheet and our business put us in a position to create value by returning this capital to our shareholders,” remarked Yousry Bissada, President and Chief Executive Officer of Home Capital. “This transaction offered liquidity to the shareholders who participated while being significantly accretive to the rest of our shareholders.”

“We will continue to return capital to our investors and are proceeding with our previously announced intention to apply for a Normal Course Issuer Bid immediately following the settlement of the Offer,” Mr. Bissada added.

Shareholders had the opportunity under the Offer to tender Shares until 5:00 p.m. (Eastern time) on December 18, 2018. The Offer was made by way of a “modified Dutch auction” with Offer prices ranging from C$16.50 to C$18.50 per Share. Based on preliminary results, approximately 26 million Shares were tendered under the Offer (including Shares tendered by notice of guaranteed delivery). As the Offer was oversubscribed, shareholders who made auction tenders at C$16.50 and purchase price tenders are expected to have approximately 83% of their successfully tendered Shares purchased by Home Capital, other than “odd lot” tenders, which are not subject to proration.

The full details of the Offer are described in the offer to purchase and issuer bid circular dated November 12, 2018, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.

Columbia Insurance Company, a wholly-owned subsidiary of Berkshire Hathaway Inc. (“Berkshire”) made a purchase price tender of all of its Shares, representing approximately 19.99% of the outstanding Shares. As a result, immediately following take-up of the Shares, Berkshire is expected to hold less than 10% of the outstanding Shares.

The number of Shares to be purchased under the Offer and the Purchase Price and the proration factor are preliminary, subject to verification by the Depositary and assume that all Shares tendered through notice of guaranteed delivery will be delivered within the two trading day settlement period. Home Capital will announce the final results following completion of take-up of the Shares.

This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Shares.

Caution Regarding Forward Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation, including relating to the Company’s completion of a substantial issuer bid and the size of the substantial issuer bid. Please refer to Home Capital’s 2017 Annual Report, available on Home Capital’s website at , and on the Canadian Securities Administrators’ website at , for Home Capital’s Caution Regarding Forward-looking Statements.

About Home Capital and Home Trust

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”). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through a direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181219005222/en/

CONTACT: FOR ADDITIONAL INFORMATION:

Jill MacRae

Director, Investor Relations

416-933-4991

jill.macrae@hometrust.ca

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE

SOURCE: Home Capital Group Inc.

Copyright Business Wire 2018.

PUB: 12/19/2018 07:00 AM/DISC: 12/19/2018 07:01 AM

http://www.businesswire.com/news/home/20181219005222/en