Caledonia Investments to sell 7IM stake to Canadian pension for £255m

investmentweek.co.uk:

Rumours about Caledonia selling 7IM have been floating since early 2022.

The FTSE 250-listed investment trust will receive cash proceeds of £255m, net of transaction expenses and subject to the exact timing of completion, for the sale of its 7IM shares, it said in a stock exchange notice today (5 September).

Caledonia's investment in the company was valued at £187.1m in its audited accounts as of 31 March 2023, excluding an additional £13.2m that will be invested in 7IM prior to closing of the sale.

The transaction is subject to change in control approval by the Financial Conduct Authority and is expected to complete in late 2023 or early 2024.

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In a separate statement, Ontario Teachers said it would support 7IM's current management team and retain its existing strategy under the leadership of chief executive Dean Proctor.

«We are well positioned for our next phase of growth and introducing a new investor in Ontario Teachers' is a natural and planned next step in the development of 7IM,» said Proctor.

«I am very excited about our partnership with Ontario Teachers', who are deeply supportive of the team and the firm's strategy, and who share the same ambitions, client-centric culture and values as 7IM.»

The pension fund said the acquisition will provide 7IM's management team with access to long-term capital and expertise to help carry out its growth plans over the next decade, including pursuing organic net flow expansion as well as M&A.

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Iñaki Echave, senior managing director at Ontario Teachers', added: «7IM is one of the highest-quality, fast-growing financial services platforms in