TORONTO, Dec. 27,
2024 /CNW/ - Scotiabank announced today that
following regulatory approval from the Board of Governors of the
Federal Reserve System, it has completed its acquisition of an
additional approximately 10% pro-forma ownership stake in KeyCorp
through newly issued common shares at US$17.17 per share, for a cash consideration of
approximately US$2.0 billion.
Scotiabank announced on August 12,
2024, that it had entered into an agreement to acquire an
approximately 14.9% pro-forma ownership stake in KeyCorp for total
consideration of approximately US$2.8
billion. Scotiabank previously closed the initial investment
of approximately 4.9% on August 30,
2024, and has now completed both stages of the
investment.
"Our investment in KeyCorp represents a cost-effective, low-risk
approach to deploying capital into the U.S. while boosting returns
for our shareholders," said Scott
Thomson, President and Chief Executive Officer of
Scotiabank. "We are pleased to have closed this transaction, which
is consistent with our commitment to allocate capital from
developing markets to developed markets in North America."
The impact to Common Equity Tier 1 ratio from both stages of the
transaction is expected to be approximately -55 basis points.
Scotiabank's approximately 14.9% ownership interest will be
classified as an Investment in Associate for accounting
purposes.
About Scotiabank
Scotiabank's vision is to be our
clients' most trusted financial partner and deliver sustainable,
profitable growth. Guided by our purpose: "for every future," we
help our clients, their families and their communities achieve
success through a broad range of advice, products and services,
including personal and commercial banking, wealth management and
private banking, corporate and investment banking, and capital
markets. With assets of approximately $1.4 trillion (as
at October 31, 2024), Scotiabank is one of the largest banks
in North America by assets, and trades on the Toronto
Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS).
For more information, please visit www.scotiabank.com and
follow us on X @Scotiabank.
SOURCE Scotiabank
