TD Bank Group in Toronto will sell its remaining stake in Charles Schwab.
The Canadian company said in a press release that it will divest its 10.1% stake through a registered offering and selling shares back to the brokerage firm.
Schwab has agreed to buy $1.5 billion of its shares from TD conditional on the 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,” Raymond Chun, the company’s president and CEO, said in the release.
“We are confident in TD’s growth opportunities and long-term potential, and we plan to use … the proceeds to repurchase our stock,” Chun added. “We will invest the balance of the proceeds in our businesses to further support our customers and clients, drive performance and accelerate organic growth.”
The secondary offering will be led by TD Securities and Goldman Sachs.