The second suitor to CFF is expressing new determination to press ahead with its bid to acquire control of the bank and to take it public – that despite the approval Home Trust appears to have already won.
“We are determined to go all the way,” JD Diabira, chief executive officer for Westbridge, told MortgageBrokerNews.ca. “The board is leaning toward recommending our offer.”
MortgageBrokerNews.ca hasn’t been able to confirm with either CFF or Home Capital, but Diabira remains confident in the relative strength of the mortgage REIT’s proposal.
“Our offer is $10-$12 million in new capital in the form of new debenture,” he told MortgageBrokerNews.ca in an exclusive interview Friday. “This is direct capital injected into the bank, and it's enough to ensure the bank has adequate capital for the year.
“We would leave existing debentures in place, and devote the capital to executing the turnaround plan.”
That plan also includes $30-$50 million to be raised through the public markets once Westbridge takes it to the TSX, Diabira said.
The interview follows less than a week after Home Capital Chairman Gerald Soloway shared details of what he pointed to as the company’s own seal of approval for its offer.
“The offer not only has been made, it has been approved and accepted as of last Thursday; it’s not only approved by the directors, but by 80% of the shareholders as well,” Soloway, CEO of Home Capital Group, told MortgageBrokerNews.ca Tuesday. “We’re just going full tilt ahead to close the transaction and we are highly confident.”
The HC deal has held a great deal of appeal for several CFF centre operators, some telling MortgageBrokerNews.ca that the lender’s alternative offerings and its reputation could help vault their business – and the bank – to the next level.
Commenters to MortgageBrokerNews.ca have been largely welcoming of the deal offered by the Home Trust parent company as well.
Diabira argues Westbridge’s offer has also garnered interest.
“We already have investment bankers lined up for the follow up raise,” he said.
MBN
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