Scotiabank bids $180M US for El Salvador's Banco de Comercio
Scotiabank said Tuesday it is offering to buy El Salvador's Banco de Comercio for $180 million US in cash.
Scotiabank said its $27.75 US per share offer is open for seven days.
If the deal succeeds, Scotiabank would merge Banco de Comercio with Scotiabank El Salvador, which has 430 employees, 20 branches and 21 automated banking machines. Banco de Comercio has 1,600 employees, as well as 47 branches and 83 ABMs
With the merger of Scotiabank El Salvador and Banco de Comercio, Scotiabank will become the majority shareholder in El Salvador's fourth-largest bank, with a consolidated market share of more than 17 per cent. The merger will create a bank with nearly $1.6 billion US in assets.
"[Banco's] board of directors have endorsed the Scotiabank offer, believing it is fair to [Banco's] shareholders, and is in the best interest of the company's employees and customers," said Tim Hayward, the executive vice-president and chief administrative officer of international banking at Scotiabank.
Scotiabank shares fell 55 cents on the TSX, closing at $37.33.