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TD Bank Group To Acquire Greystone Capital - Quick Facts

The Toronto-Dominion Bank (TD,TD.TO) and Greystone Capital Management Inc., parent company of Greystone Managed Investments Inc., announced a definitive agreement, under which TD will acquire GCMI for a net purchase price of $792 million. The net purchase price comprises $730 million of enterprise value, seed capital of approximately $105 million and certain other net adjustments.

The shareholders of GCMI will receive 30% of the net purchase price in TD common shares with the remaining balance payable in cash consideration. GCMI shareholders will have the ability to elect up to an incremental 20% of the net purchase price in TD common shares, for a maximum of 50% TD share consideration.

The proposed transaction is expected to reduce TD's CET1 on close by less than 10 basis points. Approximately $170 million of the TD common shares issued to employee shareholders in respect of the purchase price will be escrowed for two years, subject to continued employment, and charged to earnings over the first two years after closing. The transaction is expected to be accretive to reported EPS by year three and accretive to adjusted EPS in year one. TD expects to recognize goodwill and intangibles of approximately $550 million on the transaction.

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