KeyCorp, Scotiabank complete initial tranche of strategic minority investment

KeyCorp (KEY) announced that The Bank of Nova Scotia (BNS), or “Scotiabank,” has completed the initial purchase of KeyCorp’s common stock with an investment of approximately $0.8B as expected. With this investment, Scotiabank now owns approximately 4.9% of KeyCorp’s common stock. This initial purchase is part of the agreement announced on August 12, under which Scotiabank will make a strategic minority investment in KeyCorp of approximately $2.8B, representing approximately 14.9% pro forma common stock ownership, for a fixed price of $17.17 per share. The parties expect to complete the final purchase of approximately $2.0B upon receipt of Federal Reserve approval, which is expected to occur in the first quarter of 2025.