06:28 AM EST, 02/11/2025 (MT Newswires) -- TD Bank Group was at last look up 0.2% in US pre-market trade after noting late on Monday that it had agreed to sell its entire stake in Charles Schwab .

TD in a statement said it currently holds 184,678,738 shares of Schwab's common stock representing 10.1% economic ownership. The Bank will sell 165,443,530 shares through a registered offering at a price of US$79.25 per share. Schwab will purchase 19,235,208 shares from the bank for US$1.5 billion. The sale is expected to close on February 12, 2025, subject to customary closing conditions.

The transaction, TD added, will generate net proceeds of approximately $20 billion after taxes and underwriting discount with $15 billion in CET1 capital created or 247 bps of CET1 capital released. TD intends to deploy $8 billion toward a share buyback program, subject to regulatory approval.

The remainder of the proceeds will be invested in the Bank's businesses.

The transaction is expected to be accretive to TD's earnings per share on a run-rate basis.

TD rose $3.19 or 3.9% on the TSX on Monday.