TD To Sell 100% Equity Investment In Charles Schwab; SCHW Down In Pre-market

(RTTNews) - Toronto-Dominion Bank (TD), Monday announced its plan to sell the entire equity investment in Charles Schwab Corp. (SCHW) through a registered offering and Schwab's share repurchase.

Shares of Charles Schwab are dropping by 4% in the pre-market trading.

TD will maintain its business relationship with Schwab through the Insured Deposit Account Agreement.

TD owns 184.7 million shares of Schwab's common stock, representing 10.1% economic ownership. Schwab has agreed to buy back $1.5 billion of its shares from TD after the offering is completed.

Raymond Chun, president and CEO of TD Bank said, "...we plan to use C$8 billion of the proceeds to repurchase our stock. We will invest the balance of the proceeds in our businesses to further support our customers and clients, drive performance and accelerate organic growth."

In the pre-market trading, Toronto-Dominion Bank is 0.95% higher at $58.51 on the New York Stock Exchange.

In the pre-market trading, Charles Schwab is sliding 3.34% at $80.40 on the New York Stock Exchange.