Equitable Group Inc. has completed a private placement of the company’s 809,585 common shares with the Ontario Municipal Employees Retirement System for $61.76 per share and aggregate proceeds of up to $50 million.
Under the agreement, OMERS will acquire shares representing approximately 4.9 per cent of Equitable Group’s issued and outstanding shares. The shares issued will be subject to a four-month hold period.
Read: OMERS sells global maritime service provider
Equitable Bank offers residential and commercial lending and savings products in Canada and has grown to more than $21 billion in assets under management, according to a press release.
The release noted the Equitable Group used the transaction’s net proceeds to invest in common shares of the Equitable Bank in order to increase its capital and allow it to fund the growth of its lending business.
Read: OMERS sells U.S.-based dental network
“This investment from a highly regarded institution will allow us to take advantage of even more opportunities in our lending businesses while maintaining our strong capital ratios and is an important endorsement of Equitable Bank’s position as a customer-focused branchless bank,” said Andrew Moor, president and chief executive officer of Equitable Group Inc.