CI Financial signs $4.7 billion deal to be privatized by Mubadala Capital

TORONTO – CI Financial Corp. has signed a $4.7 billion deal to be privatized by Mubadala Capital.

As part of the transaction, the alternative asset management arm of Mubadala Investment Co., the United Arab Emirates’ sovereign wealth fund, will pay the firm $32 per share in cash.

CI shares closed at $24.01 on the Toronto Stock Exchange on Friday.

CI Financial Corp. The logo appears in an undated handout image. CI Financial signed an agreement to be privatized by Mubadala Capital for $4.7 billion. THE CANADIAN PRESS/HO, *MANDATORY CREDIT*

William Butt, CI’s chief executive and chairman of the special committee, said the deal represents an outstanding outcome for shareholders and “provides shareholders with certainty as CI continues its ongoing transformation”.

“It also provides significant benefits to Canada by providing long-term capital to support the construction of a Canadian champion in the wealth and asset management sectors,” Butt said in a statement.

CI said Monday it expects to continue with its current Canadian operations, structure and management team.

It also hopes to maintain its headquarters in Canada and remain independent of Mubadala Capital’s other portfolio businesses.

“Mubadala Capital invests with a long-term perspective and represents long-term capital, providing stability and certainty for CI’s clients and employees,” said CI managing director Kurt MacAlpine, who is expected to continue to lead the firm.