Dominion Lending: Completes Acquisition of Series 1 Preferred Shares
Deal News | Dec 17, 2024 | Globenewswire
Dominion Lending Centres Inc. (DLCG), a premier Canadian mortgage network, has completed the acquisition of its non-voting Series 1 Class B preferred shares. These shares were obtained from entities controlled by Gary Mauris and Chris Kayat and other holders, in exchange for 30.5 million Class A common shares valued at $122 million and a cash payment of $15 million. This acquisition simplifies DLCG's capital structure, eliminating the Class B preferred shares from its listings. The consolidation also resulted in insider ownership adjustments, whereby MaurisCo and KayatCo absorbed all positions previously held by KayMaur Holdings Ltd., leading to an increase in common shares ownership by both MaurisCo and KayatCo. Belkorp Industries Inc., another major shareholder, did not change its holdings. Post-acquisition, DLCG emphasizes its streamlined structure and expected financial performance benefits. The acquisition was processed through private agreements rather than the TSX, with all parties maintaining independence in their investment strategies.
Sectors
- Financial Services
- Investment and Asset Management
Geography
- Canada – Dominion Lending Centres Inc. is a Canadian company, with its headquarters in British Columbia and operations spanning across Canada.
Industry
- Financial Services – Dominion Lending Centres Inc. operates in the financial services sector, specifically in mortgage lending, as highlighted by their network of mortgage professionals across Canada.
- Investment and Asset Management – The acquisition and share reorganization activity described in the article pertains to corporate restructuring and capital management, typical activities within the investment and asset management industry.
Financials
- 122,000,000 – Market price of 30.5 million Class A common shares exchanged for Series 1 Preferred Shares.
- 15,000,000 – Cash payment made as part of the acquisition of Series 1 Preferred Shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dominion Lending Centres Inc. | Target Company | Company | A Canadian network of mortgage professionals, involved in acquiring its own Series 1 Preferred Shares. |
| Gary Mauris | Chairman and CEO | Person | Controlled companies involved in the transaction and a significant shareholder in DLCG. |
| Chris Kayat | Co-founder | Person | Controlled companies involved in the transaction and a significant shareholder in DLCG. |
| KayMaur Holdings Ltd. | Seller | Company | Previously held Series 1 Preferred Shares, participated in reorganization to transfer shares to MaurisCo and KayatCo. |
| Mauris Family Investments Ltd. (MaurisCo) | Shareholder | Company | Controlled by Gary Mauris, received common shares as part of the acquisition. |
| 603908 B.C. Ltd. (KayatCo) | Shareholder | Company | Controlled by Chris Kayat, received common shares as part of the acquisition. |
| Belkorp Industries Inc. | Shareholder | Company | Did not change its holdings in this transaction, remains a significant common shareholder. |