Toronto-Dominion Bank to Divest Schwab Investment Through Secondary Stock Offering
Toronto-Dominion Bank (TD) has announced plans to sell its equity stake in Charles Schwab Corp. (SCHW) through a secondary stock offering.
According to a statement released on Monday, TD will divest 184.7 million shares, representing 10.1% ownership in Schwab. Schwab has agreed to repurchase $1.5 billion of its shares from TD.
"As part of our strategic review, we have evaluated capital allocation and decided to exit our Schwab investment," said TD CEO Raymond Chun. "We are pleased with the significant return generated on the shares acquired in 2020."
TD intends to utilize C$8 billion from the proceeds to repurchase its stock, while investing the remaining balance in its own business operations.