The Globe and Mail reports in its Tuesday edition that private-equity funds run by Brookfield Asset and Birch Hill are buying a majority stake worth nearly $1.8-billion in First National Financial, the mortgage company co-founded by billionaire Canadian financier Stephen Smith. The Globe's James Bradshaw writes that Brookfield and Birch Hill are paying $48 a share in cash to jointly acquire 62 per cent of First National, giving the company a total equity value of $2.9-billion. The offer is a 13-per-cent premium to Friday's closing price and 15 per cent higher than First National's average share price over the past 30 days. The deal gives First National's founders, Mr. Smith and Moray Tawse, a way to cash out about two-thirds of their shares in the company they have owned for 37 years, while still keeping a hand in the business. Mr. Smith, 74, owns 37.4 per cent of First National, and will remain the company's chairman. Mr. Tawse, who turns 68 this year, owns 34 per cent of the shares. After the deal closes, Mr. Smith and Mr. Tawse will each own about 19 per cent of the business. First National issues and securitizes residential and commercial mortgages mostly to prime borrowers -- those with strong credit and income.