The transaction is expected to result in a net investment by Scotiabank of almost USD 1.9 billion after deducting the excess capital currently at ING Direct. On closing of the transaction, Scotiabank will also fund the redemption of USD 320.5 million of subordinated debt issued by ING Direct.
The bank will also organize a public offering of 29 million common shares at USD 52 on a bought deal basis for gross proceeds of USD 1.51 billion to fund the acquisition. Scotiabank has agreed to sell the common shares to a syndicate of underwriters led by Scotia Capital on a bought deal basis. Closing of the financing is expected to occur on or after 7 September 2012. The net proceeds will be used by Scotiabank to fund the acquisition of ING Direct.
The acquisition is still subject of regulatory bodies and it is expected to be completed by December 2012.
With more than 81,000 employees, Scotiabank and its affiliates serve 19 million customers in more than 55 countries around the world. Scotiabank offers a range of products and services including personal, commercial, corporate and investment banking.
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