National Bank of Canada announced that it is increasing its stake to 100% in Credigy Ltd. National Bank of Canada became a shareholder of Credigy in 2006 and subsequently increased its stake to 80%.
Founded in 2001 and headquartered in Atlanta, Georgia, Credigy is a global specialty finance company with flexibility to acquire or finance a diverse range of assets. Credigy invests in consumer-related assets across multiple asset classes and geographies. Since its foundation Credigy has closed more than 320 deals, representing over USD 16 billion invested to date.
"National Bank is proud of Credigy’s performance since its initial investment in 2006. Credigy has greatly exceeded our growth and return expectations and we continue to see attractive potential for growth in the future," said Louis Vachon, President and Chief Executive Officer of National Bank of Canada.
The transaction follows the decision by the management team members to exercise their options to sell their common shares. Credigy’s CEO Brett Samsky commented that “the senior management team members reiterate their personal commitment to leading the next stage of Credigy’s growth strategy, as well as their confidence in the future prospects for the Company.” “The proceeds from the sale of shares will be used for estate planning, asset diversification and to fund philanthropic projects,” added Mr. Samsky.
For fiscal year 2020, the additional 20% stake acquired in Credigy would have increased National Bank’s diluted earnings per share by $0.07. The transaction will have no impact on common equity Tier 1 capital ratio according to Basel III.