(March 30 – 09:45 ET) – Scotiabank has finalized a letter of intent to increase its ownership stake in Mexico-based Grupo Financiero Inverlat, S.A. de C.V. to 55%. Scotiabank says it will convert its option to purchase an additional 45% of Inverlat by July 30, 2000. The investment is subject to closing documentation, as well as regulatory approval from the Mexican government and Canada’s Office of the Superintendent of Financial Institutions.

“We believe that this is an excellent move for Scotiabank, for the Mexican government and for Inverlat’s customers and employees,” says Peter Godsoe, Chairman and Chief Executive Officer, Scotiabank. “The Mexican economy is among the strongest in Latin America and Grupo Financiero Inverlat — as one of the country’s major financial institutions — will be able to capitalize on the significant growth opportunities anticipated in the financial services sector.”

“Inverlat has made solid progress over the past 3 1/2 years. In partnership with the Mexican government, we have invested a great deal of time and energy — on training, installing first rate risk systems and so on — to ensure Grupo Financiero Inverlat is well positioned for the future,” Godsoe says.

Scotiabank will have paid approximately US $220 million for its 55 stake. Grupo Financiero Inverlat has over 400 branches and offices, more than 860 ABMs, and approximately 7,200 employees. The Group operates three principal subsidiaries: Banco Inverlat, the largest subsidiary of the Group; Casa de Bolsa Inverlat, one of the leading investment banking firms in Mexico; and Casa de Cambio Inverlat, a leading foreign exchange house.
-IE Staff