Scotiabank seeks to increase stake in KeyCorp amid buybacks

A Scotiabank branch in Toronto on,Aug. 12, 2024. Photo by Galit Rodan/BloombergArticle contentBank of Nova Scotia is looking to increase its stake in Cleveland-based KeyCorp to as much as 19.99 per cent, up from prior permission for a 14.99 per cent interest.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentScotiabank plans to acquire additional voting shares of KeyCorp, and thereby indirectly acquire voting shares of the company’s bank unit, KeyBank National Association, according to a regulatory filing.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe increase in stake does not indicate any changes in the nature of their relationship, according to a KeyCorp spokesperson. It came a week after KeyCorp announced a US$1 billion share-repurchase program, which would increase existing shareholders’ stake.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Approval of this application will not result in any changes to the existing agreement between Scotiabank and KeyCorp, and Key would not be subject to any additional regulation as a result of Scotiabank increasing its noncontrolling investment,” the spokesperson said in an emailed statement.Article contentScotiabank representatives had no immediate comment.Article contentThe two companies struck the initial agreement in August 2024 and completed the transaction in December of that year, with Scotiabank investing about US$2.8 billion in exchange for common-stock ownership of roughly 14.9 per cent.Article contentAt that time, U.S. regional banks were working to strengthen their capital bases and relieve the pain of unrealized losses due to asset-price mismatches, the issue that led to several regional-bank failures in 2023.Article contentFor KeyCorp, the deal came together as Scotiabank approached it with “a unique opportunity to raise capital on attractive terms,” though KeyCorp was comfortable with its capital position at the time, Chief Executive Officer Chris Gorman said then.Article contentBloomberg.com Article contentTrending TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Dennis, 79, is worried about a market crash. Should he move his portfolio to 100% income? Investor Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Canadian housing bears now have nine reasons backing them up Mortgages Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Dennis, 79, is worried about a market crash. Should he move his portfolio to 100% income? Investor Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Canadian housing bears now have nine reasons backing them up Mortgages