HomeStreet Responds To Blue Lion Capital Letters To Shareholders; 'Board Of Directors And Management Have Analyzed The DUS Purchase Proposal And Determined That The Price Proposed Was Inadequate'
Portfolio Pulse from Benzinga Newsdesk
HomeStreet, Inc. (NASDAQ:HMST) has responded to Blue Lion Capital's proposal to sell its FNMA Delegated Underwriter and Servicer business (DUS Business) and related loan servicing portfolio. Blue Lion Capital estimated the value of the DUS Business between $100 million and $150 million. However, HomeStreet received an unsolicited non-binding written proposal to purchase the DUS Business for $57 million, which the company deemed inadequate.
September 22, 2023 | 7:59 pm
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HomeStreet rejected a proposal to sell its DUS Business for $57 million, considering the offer inadequate. This decision could impact investor sentiment.
HomeStreet's decision to reject the proposal to sell its DUS Business could have mixed effects. On one hand, it shows the company's confidence in the value of its assets. On the other hand, it could lead to tensions with shareholders who may have preferred the immediate cash influx from the sale.
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