17:03:44 EDT Tue 22 Oct 2019
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Bank of Nova Scotia
Symbol C : BNS
Shares Issued 1,222,387,572
Close 2019-05-23 C$ 70.50
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Globe says failed Corus deal will hurt bank syndicate

2019-05-24 06:37 ET - In the News

See In the News (C-CJR) Corus Entertainment Inc

The Globe and Mail reports in its Friday, May 24, edition that a syndicate of investment banks is expected to lose tens of millions of dollars after repricing a secondary offering of Corus Entertainment shares due to lower-than-expected demand. A triple bylined item in The Globe reports that the syndicate of underwriters, led by TD Securities, has repriced the offering of Class B Corus shares to $6.25 each, down from $6.80. The estimated hit to all of the banks in the syndicate is expected to be about $24-million. The estimated loss to TD is about $7-million. Others in the syndicate include CIBC, RBC, Scotiabank, BMO and National Bank. The original deal size was expected to be 80.6 million shares for total proceeds of around $548-million, but approximately 66 per cent of the deal did not sell, unnamed sources say. Shaw Communications announced a deal on May 14 to sell its 38.6-per-cent interest in Corus to the syndicate after struggling to sell the position to a single buyer last year. The deal was priced at $6.80 per Class B share, representing an unusually large 15.6-per-cent discount to Corus's closing price. Typically, such bought deals are sold at a discount of between 2 per cent to 4 per cent.

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