First Horizon Corporation (FHN) gained in the current market after announcing that TD Bank has acquired First Horizon. FHN values at $23.74, losing more than 30.08% compared to yesterday’s closing price. The stock closed at $18.25 at the end of the last trading session. The stock volume traded in the last trading session was around 5.82 million shares. The current market cap of the company is around $9.87 billion.
FHN acquired by TD
First Horizon (FHN) and TD Bank (TD) announced that they both have come to an agreement that TD will acquire First Horizon. The transaction value is $13.4 billion or $25 per common stock paid all in cash to First Horizon. TD Bank acquiring First Horizon was the similarity among its culture and risk-management framework, but the deal complements the TD Banks’ long-term goal of expansion.
After the deal TD’s US franchise has over $614 billion in assets and a network of 1,560 outlets servicing over 10.7 million US consumers across 22 states; globally, TD Bank Group has roughly C$1,841 billion in assets and over 27.5 million clients served by over 2,600 locations.
FHN Transaction Details
The company expects an unadjusted synergy gain of over 10% upon closure when the deal is penned. TD Banks expects that, on average, the deal should provide a 10% return on capital in 2023. First Horizon’s fully-synergized profits for 2023 are 9.8 times the acquisition price, and its anticipated tangible book value at closing is 2.1 times the purchase price.
TD Bank expects to close the deal in the first half of fiscal 2023, but that is subject to market conditions. The factors affecting the deal could be shareholders of First Horizon, Canadian or US regulatory authorities.
FHN CEO’s remarks
First Horizon is a solid bank, according to TD President and CEO Bharat Masrani. As a consequence, TD will have direct access to the attractive US bordering markets and significant future growth prospects across the Southeast. They aspire to build on their success and create outstanding client experiences in every area they serve.
Conclusion
TD Bank acquires First Horizon in the hope of creating a customer-centric business model in order to gain future expansion. First Horizon’s investments in local communities will be further developed by TD.
