MONTREAL, Dec. 2, 2020 /CNW Telbec/ - National Bank of
Canada announced that it is
increasing its stake to 100% in Credigy Ltd. National Bank of
Canada became a shareholder of
Credigy in 2006 and subsequently increased its stake to 80%.
Founded in 2001 and headquartered in Atlanta, Georgia, Credigy is a global
specialty finance company with flexibility to acquire or finance a
diverse range of assets. Credigy invests in consumer-related assets
across multiple asset classes and geographies. Since its foundation
Credigy has closed more than 320 deals, representing over
USD 16 billion invested to date.
"National Bank is proud of Credigy's performance since its
initial investment in 2006. Credigy has greatly exceeded our growth
and return expectations and we continue to see attractive potential
for growth in the future," said Louis
Vachon, President and Chief Executive Officer of National
Bank of Canada.
The transaction follows the decision by the management team
members to exercise their options to sell their common shares.
Credigy's CEO Brett Samsky commented
that "the senior management team members reiterate their personal
commitment to leading the next stage of Credigy's growth strategy,
as well as their confidence in the future prospects for the
Company." "The proceeds from the sale of shares will be used for
estate planning, asset diversification and to fund philanthropic
projects," added Mr. Samsky.
For fiscal year 2020, the additional 20% stake acquired in
Credigy would have increased National Bank's diluted earnings per
share by $0.07. The transaction will
have no impact on common equity Tier 1 capital ratio according to
Caution Regarding Forward-Looking
This press release includes certain
forward-looking statements. These statements are inherently subject
to significant risks, uncertainties and changes in circumstances,
many of which are beyond the control of the Bank, including
obtaining the necessary regulatory approvals, the risks associated
with changes in general economic conditions, and changes made to
guidelines on risk-weighted capital and their interpretation.
Except as required by law, the Bank does not undertake to update
any forward-looking statements, whether written or oral, that may
be made from time to time, by it or on its behalf. The
forward-looking information contained in this press release is
presented for the purpose of interpreting the information contained
herein and may not be appropriate for other purposes.
About National Bank of Canada
With $332 billion in assets
as at October 31, 2020, National Bank of Canada, together with its subsidiaries,
forms one of Canada's leading
integrated financial groups. It has more than 26,500 employees
in knowledge-intensive positions and has been recognized numerous
times as a top employer and for its commitment to diversity. Its
securities are listed on the Toronto Stock Exchange (TSX: NA).
Follow the Bank's activities at nbc.ca or via
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LinkedIn and Twitter.
SOURCE National Bank of Canada