May 31, 2018 / 9:23 PM / in 2 years

UPDATE 1-Scotiabank to buy doctors' wealth services firm for C$2.59 bln

(Adds deal details)

May 31 (Reuters) - Bank of Nova Scotia said on Thursday it would buy MD Financial Management, a financial services company for Canadian doctors, in a C$2.59 billion ($2.00 billion) all-cash deal.

MD Financial, which provides investment management and financial planning services, is owned by the Canadian Medical Association (CMA) and has more than C$49 billion in assets under management and administration.

Scotiabank said the deal is expected to be partly financed by a public offering of 19.7 million common shares at C$76.15 per share on a bought-deal basis for gross proceeds of C$1.50 billion.

“Scotiabank will invest C$115 million over the next ten years to support the advancement of the medical profession and health care in Canada,” Chief Executive Officer Brian Porter said in a statement.

The transaction, expected to close in the fiscal fourth quarter, will impact the bank’s Common Equity Tier 1 capital ratio by about 30 basis points.

Scotiabank’s global banking and markets unit and J.P. Morgan served as financial advisers to Scotiabank on the acquisition. ($1 = C$1.30) (Reporting by Taenaz Shakir in Bengaluru; Editing by Maju Samuel)

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