Scotiabank Signs MOU To Sell Stake In TBank; Boosts Dividend 2% - Quick Facts

(RTTNews) - Canadian lender Bank Of Nova Scotia (BNS.TO, BNS), called as Scotiabank, on Tuesday entered into a non-binding memorandum of understanding (MOU) with ING Groep N.V. (ING), Thanachart Capital Public Co. Ltd., Thanachart Bank Public Co. Ltd. (TBank) and TMB Bank Public Co. 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.

If concluded, the merger and related transactions would result in Scotiabank significantly reducing its investment in Thailand and holding a significantly smaller stake in the combined bank and receiving proceeds which is expected to result in a gain on sale.

The transactions are also expected to have a positive impact on Scotiabank's CET1 capital of about 25 basis points.

Separately, Scotiabank announced a 2 percent higher dividend of $0.87 per share on the outstanding Common Shares of the Bank, payable April 26 to shareholders of record at the close of business on April 2, 2019.