Bank of Nova Scotia to hike stake in Scotiabank Chile in $1 billion deal

SANTIAGO (Reuters) - Bank of Nova Scotia (BNS) on Monday said it has agreed to acquire Chilean holding firm Grupo Said's 16.8% stake in Scotiabank Chile in a stock and cash deal valued at approximately C$1.3 billion, or $1.02 billion, increasing BNS' ownership in Scotiabank Chile to 99.8%.

Grupo Said is set to become a relevant shareholder in BNS and retain seats on and the presidency of Scotiabank Chile's board, Scotiabank said in a statement with regulators.

"The transaction is valued at approximately C$1.3 billion. On closing the Bank will pay C$650 million in cash and issue 7 million shares to Grupo Said impacting Scotiabank's Common Equity Tier 1 capital ratio by approximately 10 basis points," BNS said in a statement.

BNS also said the transaction will add about C$35 million per quarter to its earnings and be immediately accretive to earnings per share.

The deal still requires approval from regulatory bodies.

($1 = 1.2737 Canadian dollars)

(Reporting by Fabian Cambero; Writing by Gabriel Araujo; Editing by Anthony Esposito and Mark Porter)