Equitable Group buying Concentra for $470M; hiking dividend 51%

Equitable Group has agreed to pay almost half a billion dollars to acquire Saskatoon-based Concentra Bank in a deal that will boost its asset base 31%.

Equitable Group Inc. has agreed to pay almost half a billion dollars to acquire Saskatoon-based Concentra Bank in a deal that will boost its asset base 31 per cent.

Under the terms of the deal announced shortly before 4pm ET Monday, Equitable will initially buy an 84 per cent stake in Concentra from the Credit Union Central of Saskatchewan. It said it will subsequently acquire full control through support agreements with other Concentra shareholders. The total purchase price is $470 million, according to Equitable.

“The addition of Concentra elevates Equitable's place among the country's top-tier financial institutions,” said Equitable President and Chief Executive Andrew Moor in a release. 

Concentra, which operates under the Wyth Financial brand and has $11.3 billion in assets, offers savings and loan products – including mortgages – to retail and commercial customers. It also provides services to credit unions. 

According to Equitable, 55 per cent of Concentra’s loan book is concentrated in Ontario. Alberta represents its second-most important geography, with 19 per cent of the company’s loans. 

Equitable said it will raise $200 million in a bought-deal financing to help bankroll the deal. The offering will be led by TD Securities and RBC Capital Markets, and will see 2.84 million subscription receipts priced at $70.50 apiece. Each receipt will allow the holder to receive one common share in Equitable after the acquisition of the initial 84 per cent stake in Concentra closes, which is expected in the second half of this year, pending regulatory approvals.