TD Bank Group to Unload Remaining 10.1% Stake in Charles Schwab
TD Bank Group announced plans to sell its equity stake (10.1%) in The Charles Schwab Corporation through a secondary offering and share buyback by Schwab. TD currently holds 184.7 million shares of Schwab stock. Schwab has also agreed to repurchase $1.5 billion of its shares to be executed at the secondary offering price less underwriting discount.
The repurchase will be funded by cash on hand under Schwab’s existing share repurchase program, leaving approximately $7.2 billion remaining in the authorized program. The company plans to continue opportunistic repurchases throughout 2025, aligned with its financial objectives. TD said it will continue to have a business relationship with Schwab through an insured deposit account agreement.
“As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment. We are very pleased with the strong return we are generating on the Schwab shares we acquired in 2020,” said Raymond Chun, group president and CEO, TD Bank Group, adding that the bank plans to use C$8 billion of the proceeds to repurchase its shares and plans to invest the balance in its businesses.
TD Securities and Goldman Sachs will lead the secondary offering, from which Charles Schwab will not receive any proceeds.