Mubadala Capital, the alternative asset management arm of Mubadala Investment Company, is taking Canada’s CI Financial Corp private after entering a definitive agreement in a deal worth approximately CAD4.7 billion (3.34 billion) – one of the biggest investments ever by a Middle East company in Canada.
Following the announcement, CI shares jumped 30 per cent on the Toronto Stock Exchange and were trading at CAD31.22 ($22.16).
Founded in 1965, the Toronto-headquartered CI Financial is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. CI manages, advises on and administers approximately $367.4 billion in client assets.
Mubadala Capital oversees $24 billion of assets under management and is an independent subsidiary of Mubadala Investment Company, Abu Dhabi’s sovereign investment fund.
CI will continue to operate with its current structure and management team and will be independent of Mubadala Capital’s other portfolio businesses.
All issued and outstanding shares of CI will be acquired for cash consideration equal to CAD32.00 per share, other than shares held by members of senior management who enter into equity rollover agreements. The cash purchase price represents a 33 per cent premium to the last closing price prior to the announcement of the transaction and a premium of 58 per cent to the 60-day volume-weighted average trading price on the Toronto Stock Exchange.
William E Butt, CI’s Lead Director and Chair of the Special Committee, said: “This transaction, with its significant cash premium, represents an exceptional outcome for CI shareholders and provides certainty to shareholders while CI pursues its ongoing transformation.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees.
“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.”
Hani Barhoush, Managing Director and CEO of Mubadala Capital, commented: “We are fully aligned with the strategy and direction of the firm and look forward to working with the CI management team to continue to build this outstanding business and ensure that CI continues to deliver superior services to its clients.
“We look forward to partnering with CI’s talented team to capitalise on new opportunities in the asset and wealth management sectors and build on the company’s successes.”
The transaction also supports CI’s expansion in the US, where it operates as Corient.
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