TORONTO, Dec. 3, 2019 /CNW/ - Scotiabank announced today
the closing of the previously announced transaction (the
"Transaction") to reduce its 49% interest in Thanachart Bank Public
Company Limited ("TBank") in Thailand. As part of agreements entered into
with ING Groep N.V., TBank and TMB Bank Public Company Limited
("TMB") in August 2019, Scotiabank is
selling its 49% interest in TBank in exchange for cash and an
approximately 6% ownership interest in the form of common shares in
TMB. Under the agreements, TBank will become a wholly-owned
subsidiary of TMB and the two banks will subsequently be
merged.
The Transaction supports Scotiabank's strategic decision to
focus on its core markets in the Americas where it can achieve
greater scale, lower operating risk, and realize more opportunities
for growth.
The Transaction is estimated to result in a reduction to
Scotiabank's fiscal 2020 earnings compared to fiscal 2019 of
approximately $350 million. The Bank
will record a gain on the Transaction in the "Other" segment of
approximately $410 million after-tax.
The Transaction will also result in an increase to Scotiabank's
common equity Tier 1 ("CET1") ratio of approximately 35 basis
points this quarter.
Subsequent to the Transaction, Scotiabank will retain a 49%
interest in two TBank subsidiaries. It is expected a sale process
for these subsidiaries will commence in early 2020 with a closing
expected during 2020. The future sale of the Bank's retained
interest in the two TBank subsidiaries is expected to result in
cash proceeds, a gain on sale, and an additional increase in
Scotiabank's CET1 ratio.
About Scotiabank
Scotiabank is a leading bank in Canada and a leading financial services
provider in the Americas. We are here for every future. We
help our customers, 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 a team of more than 100,000 employees and assets of
over $1 trillion (as at October 31, 2019), Scotiabank trades on the
Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange
(NYSE: BNS). For more information, please visit
http://www.scotiabank.com and follow us on Twitter
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SOURCE Scotiabank