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Brookfield Asset Management, Birch Hill to Acquire First National in $2.9B Deal
Brookfield Asset Management and Birch Hill Equity Partners have agreed to acquire a majority stake (62%) in First National Financial in a transaction with an equity value of $2.9 billion.
The private-equity firms will pay $48 per share in cash, representing a 15% premium to the mortgage provider’s 30-day average share price.
The proposed transaction is to be completed through a plan of arrangement under Ontario’s Business Corporation Act. The deal follows a strategic-review process led by RBC Dominion Securities and is expected to close in the fourth quarter, pending shareholder, court and regulatory approvals. A shareholder vote is planned for September.
First National’s co-founders, Stephen Smith and Moray Tawse, along with their associates, are selling approximately two-thirds of their combined holdings—currently 37.4% and 34% respectively. Upon closing, each will retain a 19% ownership stake.
First National, known for its focus on prime residential mortgages, will continue under the leadership of CEO Jason Ellis.
- ◦Financing
