Scotiabank Completes Additional Investment in KeyCorp

Scotiabank Completes Additional Investment in KeyCorp

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.

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SOURCE Scotiabank