(Bloomberg) -- Toronto-Dominion Bank plans to exit its equity investment in Charles Schwab Corp. via a secondary stock offering.
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TD will sell 184.7 million shares of Schwab's common stock, representing 10.1% economic ownership, according to a statement Monday. Schwab has agreed to buy back $1.5 billion of its shares from TD.
"As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment," TD CEO Raymond Chun said. "We are very pleased with the strong return we are generating on the Schwab shares we acquired in 2020."
TD said it plans to use C$8 billion of the proceeds to repurchase its stock, and will invest the balance of the proceeds in the company's businesses.