TD Bank Group unveiled Tuesday the full details of its $13.1 billion divestiture from financial powerhouse Charles Schwab Corp., marking a major shift in strategy as the Canadian lender exits its 10.1% stake in the brokerage giant.
This decision, which comes just four years after TD acquired its shares in Schwab, represents a calculated move to unlock capital, repurchase shares, and accelerate growth.
Breaking Down the $13.1B Deal
TD, which holds 184.7 million Schwab shares, will sell 165.4 million shares via a registered offering at $79.25 per share. Additionally, Schwab has agreed to buy back 19.2 million shares for $1.5 billion, further cementing its commitment to shareholder value.
The sale, expected to close Wednesday, will generate an estimated CA$20 billion ($13.97 billion) in net proceeds for TD, after taxes and underwriting costs.
TD CEO: “A Strong Return” on Investment
TD had previously hinted at its Schwab exit but didn’t disclose the financial terms until Tuesday. CEO Raymond Chun framed the move as a strategic recalibration.
