Laurentian Bank Concludes Strategic Review Without Sale Of Business

It appears that there was little interest in acquiring Laurentian Bank (TSX: LB). The firm this morning indicated it has completed its strategic review of options and has ultimately elected to continue doing what it was already doing after failing to find a buyer.

In official company speak, Laurentian has concluded that the best path forward is to “embark on an accelerated evolution of its current strategic plan with an increased focus on efficiency and simplification.”

The strategic review is said to have considered an acquisition of the whole bank, divestment of certain segments, as well as accelerating its ongoing strategic plan, the latter of which was selected.

In connection with the “acceleration,” the company has moved Eric Provost from head of Commercial Banking to the leadership role for personal banking as head Personal & Commercial Banking, replacing Karine Abgrall-Teslyk. Sebastien Belair meanwhile will become Chief Administrative Officer, in addition to serving as the Chief Human Resources Officer, replacing Yves Denomme.

READ: Laurentian Bank Could Be Up For Sale For Over $2 Billion

“As a Board, we have completed our review and we are unanimous in our decision that embarking on an accelerated evolution of the Bank’s current strategic plan with an increased focus on efficiency and simplification will drive the most value for our shareholders and stakeholders,” commented Mike Mueller, Chair of the Board.

The company initially undertook the strategic review on July 11, in an effort to optimize shareholder and stakeholder value. Many in the industry perceived the company to be looking to sell itself amid a rising rate environment.

Laurentian Bank last traded at $35.87 on the TSX.

Information for this briefing was found via The Globe And Mail, Sedar, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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