Scotiabank To Transfer Banking Operations In Colombia, Costa Rica, Panama To Davivienda

(RTTNews) - The Bank of Nova Scotia (BNS), Monday announced the decision to transfer its banking operations in Colombia, Costa Rica and Panama to Latin America-based Davivienda.

In exchange for the transfer, the bank will receive a combination of newly issued common and preferred shares, reflecting an approximate 20 percent of equity ownership stake in the newly combined entity.

The move is expected to enhance Scotiabank's operational efficiency in non-core markets, as well as shift its focus on client primacy across the growth markets in the North American corridor and Latin America.

The transaction, set to complete in about one year from signing, is capital neutral overall with potential upside to earnings in future years, the company added.

Currently, Scotiabank's stock is trading at $53.97, up 1.09 percent on the New York Stock Exchange.