jetcityimage
- The Bank of Nova Scotia (NYSE:BNS) completed its initial purchase of ~$0.8B of KeyCorp (NYSE:KEY) common stock, giving Scotiabank ~4.9% stake in KeyCorp, the companies said on Friday.
- The purchase is part of the agreement for Scotiabank (BNS) to acquire ~14.9% of Key’s (KEY) common stock for $2.8B, which the companies announced on Aug. 12.
- They expect to complete the final purchase of ~$2.0B upon receipt of Federal Reserve approval, which is expected in Q1 2025.
- The capital infusion will allow KeyCorp (KEY) to reposition its available-for-sale securities portfolio, to accelerate the timing of its expected profitability, liquidity, and capital improvements, KEY said on Aug. 12.
- KeyCorp (KEY) stock rose 0.4% in Friday morning trading, while Scotiabank (BNS) shares increased 0.9%.
