KeyCorp Jumps In Pre-market On $2.8 Bln Investment By Scotiabank

(RTTNews) - Shares of KeyCorp (KEY), a U.S. bank holding company, were surging more than 20 percent in pre-market on Monday to $17.60 on the news of $2.8 billion investment from Bank of Nova Scotia.

As per the agreement, Scotiabank will purchase about 163 million shares of KeyCorp at $17.17 per share, nearly 14.9 percent stake.

"This transaction creates greater capacity for growth by enabling additional investments in targeted scale across our franchise and increases Key's strategic agility as we navigate an uncertain environment from a position of strength. We have a proven track record of driving growth in areas such as investment banking, payments, and wealth management, and we expect to leverage our strengthened financial position to lean into these areas more aggressively," said KeyCorp Chairman and Chief Executive Officer, Chris Gorman.

KeyCorp stock had closed at $14.61, up 0.48 percent on Friday. It has traded in the range of $9.50 - $16.51 in the last 1 year.