What's Happening?
First National Financial Corporation has announced shareholder approval of a plan of arrangement for its acquisition by private equity funds managed by Birch Hill Equity Partners and Brookfield Asset Management. The arrangement involves acquiring all outstanding shares for $48.00 per share in cash, excluding shares owned by the company's founders. The approval required a two-thirds majority vote, which was achieved with 98.82% of votes cast. The transaction is subject to final court approval and clearance under the Competition Act in Canada.
Why It's Important?
The acquisition marks a significant shift in First National's ownership structure, potentially affecting its strategic direction and operations. The involvement of major private equity firms suggests a focus on maximizing shareholder value and possibly restructuring the company for future growth. The transaction could influence the mortgage industry, given First National's position as a leading non-bank mortgage originator in Canada.
What's Next?
The transaction is expected to close in the fourth quarter of 2025, pending final court approval and regulatory clearance. The company will seek a final order from the Ontario Superior Court of Justice to approve the arrangement. The completion of the transaction will depend on satisfying remaining conditions outlined in the arrangement agreement.
