STRATEGIC PARTNERS
January 6, 2002
TORONTO -- Royal Bank of Canada (TSE, NYSE: RY) has completed its acquisition of Centura Banks Inc. (NYSE: CBC), headquartered in Rocky Mount, N.C.
Under the terms of the agreement between Royal Bank and Centura, each share of Centura common stock outstanding at the close of business on June 5, 2001 was converted into 1.684 common shares of Royal Bank. Pursuant to this acquisition, Royal Bank is issuing approximately 67 million common shares in exchange for all outstanding common shares of Centura.
The Royal Bank common shares have been listed on The Toronto Stock Exchange and the New York Stock Exchange. These shares have not been listed on the London Stock Exchange plc (LSE) and cannot be traded on the LSE unless they are listed.
The value of the transaction is approximately $2.3 billion U.S. or $3.5 billion Canadian. Goodwill and intangible assets are approximately $1.4 billion U.S. and $2.1 billion Canadian and will be amortized over 20 and 10 years, respectively.
As announced on May 23, Royal Bank intends, subject to the approval of The Toronto Stock Exchange, to repurchase up to 18 million of its common shares. Purchases by Royal Bank may commence only after approval is received from The Toronto Stock Exchange and may continue for a period of one year.
"The successful completion of this transaction is a very important step in our growth strategy in the United States. Centura provides us with the opportunity to create a retail banking platform in the United States with considerable potential for growth," said Jim Rager, vice-chairman of Royal Bank, responsible for its personal and commercial banking businesses.
