Business
Scotiabank announces agreement to acquire 14.9% equity interest in KeyCorp
Scotiabank announces agreement to acquire 14.9% equity interest in KeyCorp Canada NewsW...
About this update from Bank Of Nova Scotia
[{"type":"text","content":"\n\n\n\n Scotiabank announces agreement to acquire 14.9% equity interest in KeyCorp\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n\n ,\n \n\n Aug. 12, 2024\n \n\n /CNW/ - Scotiabank announced today that it has entered into an agreement to acquire an approximate 14.9% pro-forma ownership stake in KeyCorp through an issuance of common shares at a price of\n \n $17.17\n \n per share, representing an 11% premium to the volume weighted average price for the last 20 trading days. The total cash consideration is approximately\n \n US$2.8 billion\n \n (the \"Investment\").\n \n\n\n\n\n\n\n\n\n KeyCorp is a premier U.S. based financial services company operating across 15 states, with\n \n US$187 billion\n \n in assets and approximately 1,000 branches offering commercial and retail banking and investment advice and services.\n \n\n The Investment will be completed in two stages—an initial investment of 4.9% (the \"Initial Investment\") and an additional investment of approximately 10% (the \"Additional Investment\"), for a total pro forma ownership of approximately 14.9%. The Investment is expected to be accretive to earnings per share in the first full year following closing of the Additional Investment.\n \n\n \"This strategic investment in KeyCorp, a premier bank in the U.S., significantly increases the capital deployed to our identified priority markets,\" said\n \n Scott Thomson\n \n , President and CEO of Scotiabank. \"We believe that this transaction provides attractive near-term returns to our shareholders and creates future optionality for Scotiabank in the North American corridor, given our unique position as the only Canadian bank with a presence across\n \n Canada\n \n , the U.S., and\n \n Mexico\n \n . We look forward to exploring mutually beneficial strategic opportunities in the future.\"\n \n\n Scotiabank is one of the top 10 foreign banking organizations in the U.S., with a well-established Global Banking and Markets (\"GBM\") business. KeyCorp operates a complementary and attractive U.S. business focused ...