"Laurentian Bank is being split up and sold, its commercial operations going to Fairstone Bank of Canada in a $1.9 billion deal while National Bank is buying the retail and small business segment for roughly book value. The deal is the culmination of years of struggle for the more than 175-year-old bank to turn itself around, or find a buyer willing to pay enough to satisfy shareholders."
"But its presence on the main streets of Quebec won't. Laurentian's 57 branches won't be transferred over to National Bank, nor will its employees, who will instead have the option to apply for open roles at the bank. The move will affect the majority of Laurentian's roughly 2,715 employees, though it's not clear how many will stay on as part of commercial operations at Fairstone."
Laurentian Bank will be divided, with Fairstone Bank of Canada acquiring commercial operations for $1.9 billion and National Bank taking the retail and small-business segment at roughly book value. The Laurentian name will remain with Fairstone and the commercial head office will stay in Montreal, with Eric Provost continuing as chief executive. Laurentian's 57 branches and most of its roughly 2,715 employees will not transfer automatically; staff will have the option to apply for open roles at National. The commercial focus includes real estate lending, inventory and equipment financing, intermediary services and capital markets. The Fairstone deal requires a two-thirds shareholder approval and Fairstone will pay $40.50 per share in cash, while National's payment will be based on outstanding balances at closing. Technology shortcomings were cited as part of past struggles.
Read at www.cbc.ca
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