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LIMA, PERU, June 19 /CNW/ - Scotiabank today announced that it has acquired a 47.5% stake in the private Peruvian pension fund Profuturo for US$33 million. Scotiabank will be working in partnership with a group of Profuturo's existing local shareholders to manage the company. "Scotiabank is very excited about this partnership and about our entry into the high potential Peruvian pension fund market," said Carlos Gonzalez Taboada, Chairman of Scotia Peru Holdings. "Peru is a fantastic market with enormous potential. Today's announcement is the latest in a series of Peruvian investments by Scotiabank and Scotiabank Peru, underlining our confidence in the Peruvian market and in the opportunities this market presents for our customers, our employees and our shareholders." Founded in 1993, Profuturo is the fourth largest private pension fund in Peru, with 23% of the market's pension fund customers and a 17% market share of the system's revenues. "We believe that this partnership represents a significant opportunity to grow Profuturo," said Andres von Wedemeyer, Profuturo's Chairman. "We look forward to working with Scotiabank and together build a leading private pension fund for Peru." The local shareholders are made up of Cervesur, a leading Peruvian corporation and Transacciones Especiales, which is controlled by Grupo La Positiva and Grupo Suramericana. Scotiabank and the local shareholders, who together control 95% of Profuturo, have also announced that they will be launching a tender offer to acquire up to 100% of the Peruvian pension fund company. Scotiabank - which celebrated its 175th anniversary in 2007 - has been in Peru since 1997. On December 5, 2005 Scotiabank announced a US$330 million investment in Peru as part of the Bank's strategic growth plan in Latin America. The transaction ultimately combined Banco Wiese Sudameris (BWS) and Banco Sudamericano to form the country's third largest bank. In Latin America, Scotiabank has operations in Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, Panama, Peru, Puerto Rico plus minority interests in Venezuela and a representative office in Brazil. Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 60,000 employees, Scotiabank Group and its affiliates serve approximately 12.5 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With $453 billion in assets (as at April 30, 2008), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
For further information: Krista Pawley, (416) 866-3703 or Krista_pawley@scotiacapital.com