National Bank of Canada (TSX: NA) has finally completed its acquisition of Canadian Western Bank (TSX: CWB) as of this morning.
Commenting on the closing of the transaction, Laurent Ferreira, CEO of National Bank, stated, “Today is an exciting day for National Bank and marks a pivotal step in our history. This transaction will allow us to deliver a stronger banking choice for all Canadians and Canadian businesses. Our combined organization will provide customers with an expanded product and service offering nationally, while maintaining regional expertise. Thanks to CWB’s established roots in Western Canada, National Bank is expanding its operations. We will pull strengths from our collective network and further extend the depth and breadth of our banking capabilities.”
Under the terms of the transaction, shareholders of Canadian Western received 0.45 common shares of National Bank for each share of Canadian Western held. In aggregate, National Bank paid equity consideration of $5.3 billion, with Canadian Western valued at $5.6 billion when including shares already held by National prior to the transaction.
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As part of the transaction, National Bank raised $1.04 billion via the sale of 9.3 million subscription receipts at a price of $112.30 per each.
Canadian Western is expected to be delisted from the TSX as of the close of markets on February 4.
National Bank last traded at $128.99 on the TSX.
Information for this briefing was found via 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.
