First Horizon (NYSE:FHN) stock is on the rise Monday as investors react to a major deal with TD Bank (NYSE:TD).
Let’s break down all of the details investors in FHN stock need to know about the deal!
- The big news here is that TD Bank is acquiring First Horizon to expand its business in Southeast U.S.
- This has it agreeing to pay $13.4 billion for the company in an all-cash transaction.
- That results in TD Bank valuing shares of FHN stock at $25 each.
- This represents an almost 37% premium to the stock’s closing price on Friday.
- TD Bank is funding the deal with excess cash on its balance sheet.
- Bryan Jordan, president and CEO of First Horizon, will join TD Bank as its vice chair.
- This will have him reporting to Bharat Masrani, group president and CEO at TD Bank, and joining the company’s executive team.
- Likewise, he’ll also join the Boards of Directors while continuing to operate out of Memphis.
- TD Bank is expecting the deal to be immediately accretive to its adjusted earnings per share.
- The two companies are also expecting $610 million in pre-tax cost synergies once the deal is complete.
- First Horizon and TD Bank are planning for the deal to close during the latter’s fiscal first quarter of 2021.
Jordan said the following about the deal boosting FHN stock higher today.
“We have long respected TD as a leader in U.S. banking and are confident that its continued and growing investments in our local markets will extend our long history of community support.”
FHN stock is up 30.2% as of Monday morning.
There’s more stock market news for investors to check out below!
InvestorPlace houses all the latest stock content that traders need to know about. For Monday, that includes what to expect from Lucid (NASDAQ:LCID) earnings, why defense stocks are on the move, as well as the latest Alfi (NASDAQ:ALF) stock news.
More Monday Stock Market News
- Dear LCID Stock Fans, Here are 3 Key Things to Watch When Lucid Reports Earnings
- Defense Stocks RTX, LMT, NOC Pop Higher as Investors Eye German Military Spending
- ALF Stock: What’s Going on With Rideshare Tablet Maker Alfi Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
