Mr. Philip Smith reports
SCOTIABANK ENTERS INTO NON-BINDING MEMORANDUM OF UNDERSTANDING REGARDING ITS INTEREST IN THANACHART BANK PUBLIC COMPANY LIMITED (TBANK) AND POTENTIAL MERGER OF TBANK AND TMB BANK PUBLIC COMPANY LIMITED
Bank of Nova Scotia has entered into a non-binding memorandum of understanding (MOU) with ING Groep NV, Thanachart Capital Public Company Ltd., Thanachart Bank Public Company Ltd. (TBank) and TMB Bank Public Company Ltd. (TMB) regarding its interest in TBank, and the merger of TBank and TMB. All transactions contemplated by the MOU remain subject to due diligence, further negotiation and agreement by the parties as to definitive documentation (including terms), as well as regulatory approval.
The contemplated transactions are complex, and Scotiabank will provide additional information at the appropriate time in connection with the entry into of any definitive documentation. It is currently expected that the merger and related transactions would result, if concluded, in Scotiabank significantly reducing its investment in Thailand and holding a significantly smaller stake in the combined bank and receiving proceeds which are expected to result in a gain on sale. The transactions are also expected to have a positive impact on Scotiabank's CET1 capital of approximately 25 basis points.
No assurance can be given that the parties will reach a definitive agreement or that the transactions will be concluded.
About Bank of Nova Scotia
Scotiabank is Canada's international bank and a leading financial services provider in the Americas. It is dedicated to helping its more than 25 million customers become better off 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 98,000 employees and assets of over $1-trillion (as at Jan. 31, 2019), Scotiabank trades on the Toronto Stock Exchange and New York Stock Exchange.
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