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SOURCE Home Capital Group Inc.
TORONTO, Feb. 12, 2014 /CNW/ - Home Capital Group Inc. (TSX: HCG) is pleased to announce that its Board of Directors has approved a stock dividend of one common share per each issued and outstanding common share, which has the same effect as a two-for-one split of the common shares.
The stock dividend will be paid on March 10, 2014 to shareholders of record at the close of business on February 28, 2014. Share certificates representing common shares issued pursuant to the stock dividend will be mailed to Home Capital's registered shareholders on or about March 10, 2014. Non-registered shareholders' brokerage accounts will be credited for the additional shares representing the stock dividend on or about March 10, 2014. The stock dividend will effectively have no unfavourable tax consequences for Canadian shareholders or the Company.
Home Capital's common shares will be traded in accordance with the "due bill" procedures of the Toronto Stock Exchange (TSX) from February 26, 2014 through March 10, 2014. This means any trades that are executed on the TSX during this period will be identified to ensure purchasers of Home Capital's common shares receive the entitlement to the stock dividend. Home Capital's common shares are expected to begin trading on an ex-dividend basis, without an attached due bill entitlement to the stock dividend, on the TSX on March 11, 2014. The due bill redemption date will be March 13, 2014.
The stock dividend will increase the number of Home Capital's outstanding common shares from 34,744,090 to 69,488,180. Home Capital is undertaking the stock dividend to provide greater liquidity to Home Capital shareholders, increase and broaden Home Capital's shareholder base, and improve accessibility to Home Capital stock.
Home Capital's Board of Directors has also approved the payment of a quarterly dividend of 32.0 cents per share on the outstanding common shares of the Company. This represents a 4.0 cent per share increase in its quarterly dividend and is equivalent to an annual dividend of $1.28 per share. The dividend increase reflects the continuing success of Home Capital's operating subsidiaries, Home Trust Company and PSiGate. The dividend is payable on March 1, 2014 to shareholders of record at the close of business on February 24, 2014 and will be paid on shares outstanding prior to the payment of the stock dividend.
The quarterly dividend on the common shares is designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.
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 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.
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