Berkshire Hathaway Inc. subsidiary Columbia Insurance Co.'s stake in Home Capital Group Inc. is projected to be less than 10% following the Dec. 21 completion of Home Capital's C$300 million substantial issuer bid.
Columbia Insurance made a purchase price tender of all its Home Capital shares, representing approximately 19.99% of the outstanding shares.
Under the share buyback, Home Capital expects to take up and purchase 18,181,818 common shares, or about 22.7% of the company's issued and outstanding shares as of Dec. 18, at C$16.50 each. After the repurchase, Home Capital's issued and outstanding shares are expected to total 62,064,531.
The issuer bid was oversubscribed, with about 26 million shares tendered. As a result, the company will purchase 83% of shareholders' successfully tendered shares along with odd lot tenders, which are not subject to proration.