TD Bank intends to sell equity investment in Charles Schwab

TD Bank Group (TD) announced its intent to sell its entire equity investment in The Charles Schwab Corporation (SCHW) through a registered offering and share repurchase by Schwab. TD will continue to have a business relationship with Schwab through the Insured Deposit Account Agreement. TD currently holds 184.7M shares of Schwab’s common stock, representing 10.1% economic ownership. Schwab has agreed to repurchase $1.5B of its shares from TD conditional on completion of the offering. “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 Chief Executive Officer, TD Bank Group.