Home Capital shareholders reject new investment from Berkshire Hathaway
Buffett's company already owns 16 million shares, but shareholders vote against plan to buy more at a discount
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.