CI Financial signs $4.7 billion deal to be taken private by arm of UAE sovereign wealth fund
TORONTO — CI Financial Corp. has signed a deal to be taken private by Mubadala Capital in an agreement valued at $4.7 billion.
Under the transaction, the alternative asset management arm of Mubadala Investment Co., a sovereign wealth fund from the United Arab Emirates, will pay $32 per share in cash for the firm.
CI shares closed at $24.01 on the Toronto Stock Exchange on Friday.
William Butt, CI’s lead director and chair of the special committee, said the deal represents an exceptional outcome for shareholders and “provides certainty to shareholders while CI pursues its ongoing transformation.”
“It also provides significant benefits to Canada, by providing long-term capital to underpin the building of a Canadian champion in the wealth and asset management industries,” Butt said in a statement.
CI said Monday it expects to continue with its current Canadian operations, structure and management team.
It also expects to maintain its Canadian headquarters and remain independent of Mubadala Capital’s other portfolio businesses.
“Mubadala Capital invests with a long-term outlook and represents long-term capital — providing stability and certainty for CIʼs clients and employees,” said CI chief executive Kurt MacAlpine, who is expected to continue to lead the firm.
“With this transaction, CI has never been better positioned to fulfil our mission of delivering outstanding services and solutions to our clients.”
The company said MacAlpine expects to roll all his equity in the transaction and other members of CI’s senior management are also expected to have the opportunity to enter into equity rollover agreements to exchange their CI shares into a new holding vehicle.
The deal is subject to court and regulatory approvals, a
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