Laurentian Bank jumps after buyout deal with Fairstone

Shares of Canadian lender Laurentian Bank LB.TO up 18.19% at C$55.79

Privately held Fairstone Bank agrees to buy LB in a C$1.9 billion ($1.36 billion) all-cash deal

Fairstone will pay C$40.50 per share for LB, which represents a 20% premium over last close

The deal, which is expected to close by late 2026, expands Fairstone’s commercial real estate nationwide, with a focus on Québec

Separately, National Bank of Canada NA.TO will acquire the retail and small and medium-sized enterprise banking portfolios of LB

LB launched strategic review in 2023, ended sale process later in the year after failing to find a buyer

Laurentian to pay C$40 mln to Fairstone and C$10 mln to National Bank if it terminates respective deals

As of last close, LB stock up 16.6% YTD

($1 = 1.3982 Canadian dollars)