The Toronto land transfer tax is a significant portion of homeowners’ moving expenses, coming to about $11,400 for the average detached Toronto house, on top of the $12,100 provincial LTT.Galit Rodan/The Globe and Mail
It took two years, but the team at Birch Hill Equity Partners can finally say that HomeQ Corp. is under their umbrella.
The $138-million takeover for the reverse mortgage lender, first announced in March, was approved by the federal minister of finance this month and finally closed on Friday. Stockholders will receive $9.50 for each share.
Getting here wasn't easy. After HomeQ announced the deal, its major shareholder, Maxam Capital, raised a stink because it wasn't consulted. A war of words ensued. Maxam, which owned 12.2 per cent, threatened to vote against the takeover, while HomeQ countered that its dividend was doomed if it didn't go through.
Some history: Birch Hill first approached HomeQ in 2010 but was rebuffed. Fast-forward a year and a half and HomeQ began to worry it wouldn't have enough money to meet its capital ratios. Suddenly, the deal seemed much rosier.
In the end, the bickering never mattered. Maxam voted against the deal but 97 per cent of the other shareholders did. So more than 75 per cent of all shareholders approved it.
The deal is especially sweet for Birch Hill's Matthew Kunica, a lead player in the HomeQ transaction. Not only did the deal go through, but he was promoted to partner last week.
Tim Kiladze