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Apollo, Centerbridge among potential bidders for Canada's Home Capital -sources
May 2, 2017 / 4:38 PM / 7 months ago

Apollo, Centerbridge among potential bidders for Canada's Home Capital -sources

TORONTO/NEW YORK, May 2 (Reuters) - Buyout firms Apollo Global Management LLC, Blackstone Group LP and Centerbridge Partners LP are among potential suitors studying bids for Canada’s biggest alternative mortgage lender, Home Capital Group Inc, which sought emergency funding last week, people familiar with the matter told Reuters.

Brookfield Asset Management and Fairfax Financial Holdings Ltd are among the other firms interested in buying Home Capital, the people said, speaking on condition of anonymity as the discussions are private.

Home Capital, which has a market value of about $350 million, said last week it had hired RBC Capital Markets and BMO Capital Markets “to advise on further financing and strategic options” and after securing a high-interest C$2 billion credit line.

The potential bidders are working with investment banks as they consider their options and are likely to wait until a Canadian regulator holds a hearing on Thursday, the people added. The Ontario Securities Commission has accused Home Capital of making “materially misleading statements” to investors and named its current chief financial officer and two former chief executive officers.

Home Capital and Brookfield declined to comment. Apollo, Blackstone, Centerbridge and Fairfax did not immediately respond to requests for comment. (Reporting by John Tilak in Toronto and Jessica DiNapoli in New York; Editing by Nick Zieminski)

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