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Canadian mortgage lender Home Capital Group Inc. says it turned down an approach from an unnamed buyer because the price was too low.
Toronto-based Home Capital didn’t disclose the exact amount of the offer but said it was more than C$28.60 a share — the maximum price on a stock buyback it recently announced. That means the takeover approached valued the company at at least C$1.2 billion ($930 million).
The board determined the cash offer “undervalues the company’s shares and falls short of reflecting Home Capital’s intrinsic value and its future growth potential,” Home Capital said in a statement. It consulted BMO Capital Markets and TD Securities, as well as law firm Torys LLP, for advice.