Shares of KeyCorp (KEY) jumped Monday morning after announcing that the Bank of Nova Scotia (BNS) acquired a 14.9% stake in the bank, valued at roughly $2.8 billion.

Scotiabank will buy approximately 163 million shares over a pair of transactions, with the🌳 first being an $800 million investment at the end of the month. After the companies receive approval from regulators and the Federal Reserve, which they expect to take place by the first quarter of 2025, Scotiabank will invest another $2 billion in KeyBank.

KeyCorp Taking 'Unique Opportunity to Raise Capital on Attractive Terms'

"Scotiabank approached us with a unique opportunity to raise capital on attractive terms," KeyCorp CEO Chris Gorman said. "While we continue to be comfortable with our current capital position, we determined that the investment enables Key to accelerate our well-communicated capital and earnings improvement while bolstering our strategic position,"

Scotiabank will be purchasing shares set at a fixed price of $17.17 per share, a premium of roughly 17.5% to Friday's closing price of $14.61.

KeyCorp shares were recently up about 13%, reaching levels not seen since early 2023. Scotiabank's shares fell some 4%.