Firm had rapidly acquired wealth management & fund manufacturing arms, now being taken private by UAE sovereign wealth manager
CI Financial Corp announced that it has been acquired and will be taken private in a deal that values CI at approximately $12.1 billion. The deal is with Mubadala Capital, the alternative asset management arm of Mubadala Investment Company. All issued and outstanding CI shares will be acquired for a cash consideration of $32.00 per share, a 33 per cent premium on the last closing price prior to the announcement of the transaction.
CI will continue to operate with its current structure and management team. Kurt MacAlpine, CEO of CI will continue in his role. The shares held by members of senior management will enter into equity rollover agreements. CI’s board has unanimously endorsed the acquisition and recommends that CI shareholders vote in favour of the transaction.
“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,” said William E. Butt, CI’s Lead Director and Chair of the Special Committee. “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.”
Mubadala Investment Company is an Emirati sovereign investor headquartered in Abu Dhabi managing $302 billion (USD) in assets.
“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,” said Hani Barhoush, Managing Director and CEO of Mubadala Capital.
A press release announcing the acquisition notes that it should support CI’s expansion into the US market under the Corient brand.
“We’re excited to continue to execute our U.S. strategy with our incredibly talented team,” said Mr. MacAlpine. “Notably, the transaction preserves Corient’s structure and its unique Private Partnership model, under which 250 of our colleagues are equity Partners in Corient. Our partnership model is highly differentiated in our industry – it allows us to deliver the best of the firm to all clients and creates a culture of collaboration and unified purpose.”
