Scotiabank to make a strategic minority investment in KeyCorp
Torys is acting as Canadian counsel to Scotiabank with a team that includes (Ricco) A.S. Bhasin (corporate/M&A), Blair Keefe and Eli Monas (bank regulatory), Omar Wakil and Christopher Caparelli (competition/antitrust), Jerald Wortsman and Andrew Silverman (tax).
On August 12, 2024, KeyCorp announced that it reached an agreement under which The Bank of Nova Scotia ("Scotiabank") will make a strategic minority investment in KeyCorp.
The minority investment of approximately US$2.8 billion represents an approximate 14.9% pro forma common stock ownership, for a fixed price of US$17.17 per share.
Scotiabank will purchase approximately 163 million shares of KeyCorp's common stock in two tranches:
- an initial investment of US$0.8 billion, after which Scotiabank will own 4.9% of KeyCorp's common stock, will occur upon expiration of the antitrust waiting period under the Hart-Scott-Rodino (HSR) Act,
- followed by an additional investment of US$2.0 billion, after which Scotiabank will own approximately 14.9% of KeyCorp's common stock, upon approval by the Federal Reserve.
As part of the transaction, KeyCorp and Scotiabank also plan to explore commercial opportunities to partner together in the future to best serve their respective client bases.
Further information can be found on PR Newswire’s website.
KeyCorp is one of the largest bank-based financial services companies in the United States, with assets of approximately US$187 billion at June 30, 2024. It provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. KeyCorp also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name.
Scotiabank helps its 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. It has assets of approximately C$1.4 trillion, as of April 30, 2024.