Toronto — Canadian lender Home Capital Group’s shares soared as much as 18% to its highest since April on Thursday after billionaire Warren Buffett’s Berkshire Hathaway agreed to provide a new C$2bn loan facility. Berkshire Hathaway will also take a 38.4% stake in the company after buying $400m worth of Home Capital stock. Home Capital had sought new funding to replace a costly emergency credit line it received on April 26 from the Healthcare of Ontario Pension Plan after depositors rushed to withdraw funds from its high-interest savings accounts. Depositors have pulled 95% of funds from Home Capital’s high-interest savings accounts since March 27, when the company terminated the employment of former CEO Martin Reid. The withdrawals accelerated after April 19, when Canada’s biggest securities regulator, the Ontario Securities Commission, accused Home Capital of making misleading statements to investors about its mortgage underwriting business. Home Capital last week reached a settle...
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