Banking News

Equitable Bank Completes Acquisition of Concentra Bank

Equitable Bank Completes Acquisition of Concentra Bank

Acquisition accelerates growth, plus diversification of funding and revenue for Canada’s Challenger Bank

Equitable Bank, a wholly owned subsidiary of EQB Inc, announced it has completed the acquisition of Concentra Bank for a premium of $35.7 million to its $459.7 million book value of common equity, subject to final standard closing purchase price adjustments.

“The addition of Concentra Bank brings immediate scale, diversification, and reach to Canada’s Challenger Bank and will benefit all stakeholders as we use our combined advantages to grow, innovate and enhance our offerings in keeping with our proven value creation method,” said Andrew Moor, President and CEO.  “We are particularly excited to use our financial capacity and industry-leading technology capabilities to add value to our Credit Union partners across the country in ways that will support the important role they play in the lives of millions of Canadians.  This is a proud day for all of us, and thanks to great preparation over the past few months, we will move with speed, care and purpose to achieve our ambitions.”

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Issuance of common shares pursuant to subscription receipts

A portion of Equitable’s payment for the Acquisition was financed with the net proceeds from the issuance in February 2022 of approximately $230 million of underwritten subscription receipts (the “Subscription Receipts”) of EQB pursuant to a prospectus supplement dated February 9, 2022 to the EQB base shelf prospectus dated June 12, 2020.

Upon closing of the Acquisition, the common shares of EQB issuable pursuant to the 3,266,000 Subscription Receipts were automatically issued through the facilities of CDS Clearing and Depository Services Inc. in accordance with the terms of the Subscription Receipts, as applicable, on a one-for-one basis.  This issuance of common shares increased the number of EQB’s outstanding common shares to approximately 37.5 million.

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As per established TSX guidelines, trading in the Subscription Receipts on the Toronto Stock Exchange will be halted effective prior to opening of trading on the TSX today and the Subscription Receipts will be delisted as at the close of business today.  The transfer register maintained by the subscription receipt agent for the Subscription Receipts will be closed as at the close of business today.

“With strong Board and executive sponsorship, and the dedication of our combined workforce of now approximately 1,800 challengers, the integration of Concentra Bank is expected to be customer focused, risk managed and accretive,” said Chadwick Westlake, Chief Financial Officer.  “Thanks to the integration work that commenced in February, we are confident that the financial benefits and synergies we identified at the outset will be achieved on the terms and timing originally envisioned.  We look forward to sharing more of this guidance with investors as part of our EQB Q3 2022 results on November 8th.”

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