Laurentian Sold In $1.4 Billion Deal
Fairstone Bank to Pay C$40.50 Per Share
Laurentian Bank of Canada reached an agreement to sell itself to Fairstone Bank for C$1.9 billion ($1.4 billion) and will hive off its retail banking unit to focus on commercial lending.
Fairstone will pay C$40.50 per share in cash, a 20% premium.
Prior to that deal closing, National Bank of Canada, the country’s sixth-largest lender, will acquire all of Laurentian’s retail and small-business assets and liabilities, in a the three-way transaction.
The deal has the backing of the Caisse de Depot et Placement du Quebec, which is the largest shareholder in Laurentian with an about 8% stake, according to data compiled by Bloomberg.
All branches of Laurentian Bank located in Quebec will eventually be closed.
National also acquired Canadian Western Bank earlier this year for C$5 billion, giving it a bigger footprint in the western provinces of Alberta and British Columbia.
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