Imperia Intercontinental’s $250 Million Acquisition of Bank of Nova Scotia business in El Salvador

Consortium Legal, Arias and Torys advised on the deal

Scotiabank has reached an agreement under which Scotiabank will sell its banking and insurance operations in El Salvador, including Scotiabank El Salvador, its subsidiaries and Scotia Seguros, to Imperia Intercontinental Inc. (“Imperia”), subject to regulatory approval and customary closing conditions. Imperia is the main shareholder of Banco Cuscatlán S.A and Seguros e Inversiones S.A (“SISA”) in El Salvador.

The decision is driven by the bank’s strategy to focus on key markets which can generate greater scale for Scotiabank.

This transaction is expected to result in an after-tax loss of approximately $170 million that primarily represents the carrying value of goodwill relating to this business and will be recorded in Q2 2019. Upon closing, Scotiabank’s common equity Tier 1 (CET1) ratio will increase by approximately 6 basis points.

Scotiabank is Canada’s international bank and a leading financial services provider in the Americas. We are dedicated to helping our more than 25 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 97,000 employees and assets of $998 billion (as at October 31, 2018), Scotiabank trades on the Toronto Stock Exchange (BNS) and New York Stock Exchange BNS, +3.63%.

Consortium Legal advised Imperia Intercontinental Inc. with  Oscar Samour Santillana (Picture), Felipe Aragón Vassiliu and Marcela Zelaya.

Torys was lead counsel for The Bank of Nova Scotia (Scotiabank) by (Ricco) A.S. Bhasin, and including Andrew Silverman and Kevin Armitage. In El Salvador, Scotiabank was represented by Arias, including Ana Mercedes López, Mario Lozano and Julissa Castro.

Involved fees earner: Julissa Castro – Arias ; Ana Mercedes López – Arias ; Mario Lozano – Arias ; Felipe Aragón Vassiliu – Consortium – Legal; Oscar Samour Santillana – Consortium – Legal; Marcela Zelaya – Consortium – Legal; Kevin Armitage – Torys LLP; (Ricco) A.S. Bhasin – Torys LLP; Andrew Silverman – Torys LLP;

Law Firms: Arias ; Consortium – Legal; Torys LLP;

Clients: Imperia Intercontinental; Scotiabank;

Author: Ambrogio Visconti.