Buffett’s company already owns 16 million shares, but shareholders vote against plan to buy more at a discount
CBC News Posted: Sep 12, 2017 10:48 AM ET Last Updated: Sep 12, 2017 11:09 AM ET
Shareholders of Home Capital Group Inc. voted against taking a second life line from Warren Buffett’s Berkshire Hathaway, which keeps the billionaire’s stake in the alternative mortgage lender at just under 20 per cent.
More than 88 per cent of Home Captial shareholders voted against a proposal that would have seen Buffett’s company buy another 23.9 million shares in the company for $10.30 a share.
Buffett’s company already owns 16 million shares in the company, which he acquired earlier this summer in exchange for loaning the company $2 billion US after depositors pulled out 90 per cent of their money after regulators began to probe the company.
Buffett bought his original stake for roughly $9.55 a share. Currently, Home Capital shares are trading at $13.90 on the TSX. As recently as 2014, the shares were worth more than $50 a share.
To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada’s online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.
By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.
Note: The CBC does not necessarily endorse any of the views posted. By submitting your comments, you acknowledge that CBC has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that comments are moderated and published according to our submission guidelines.