CI Financial to be taken private by UAE's Mubadala Capital in $3.36 billion deal

Deal News | Nov 25, 2024 | Zawya

CI Financial to be taken private by UAE's Mubadala Capital in $3.36 billion deal

Mubadala Capital, a unit of the UAE's Mubadala Investment Company, has reached an agreement to take CI Financial Corp. private in a deal valued at 4.7 billion Canadian dollars (approximately $3.36 billion). CI Financial's shareholders will receive CAD32 per share, representing a 33% premium on Friday's closing price and a 58% premium on the 60-day average on the Toronto Stock Exchange. The deal implies an enterprise value of about CAD12.1 billion. CI Financial, based in Toronto, is a major asset and wealth management firm with operations in Canada, the US and Australia, managing over CAD518 billion in assets. The acquisition is still subject to court approval and regulatory conditions. Advisors in the deal include Jefferies Securities Inc. and legal firms Blake, Cassels & Graydon LLP, and Latham & Watkins LLP.

Sectors

  • Asset Management
  • Private Equity
  • Financial Services

Geography

  • United Arab Emirates – Mubadala Capital is based in the UAE and plays a central role as the acquirer in this transaction.
  • Canada – CI Financial is a Canadian company being acquired and listed on the Toronto Stock Exchange.
  • United States – CI Financial operates in the US as part of its global asset management operations.
  • Australia – CI Financial also conducts operations in Australia, highlighting its global management presence.

Industry

  • Asset Management – CI Financial is an asset and wealth management company; Mubadala Capital's acquisition takes place in this sector.
  • Private Equity – Mubadala Capital is an alternative asset manager and a part of a sovereign wealth fund, involved in private equity transactions.
  • Financial Services – The transaction involves major financial advisory roles and impacts the financial services industry.

Financials

  • $3.36 billion – The transaction value for CI Financial as proposed by Mubadala Capital.
  • CAD32 per share – The offer per share from Mubadala Capital to CI Financial shareholders.
  • CAD12.1 billion – The implied enterprise value of CI Financial in the transaction.
  • 33% – The premium offered per share over the closing price prior to the announcement.
  • 58% – The premium over the 60-day volume-weighted average trading price.
  • CAD518 billion – The amount of assets managed by CI Financial.
  • $24 billion – Assets under management by Mubadala Capital.

Participants

NameRoleTypeDescription
Mubadala CapitalBidding CompanyCompanyAn affiliate of Mubadala Investment Company, involved in alternative asset management.
CI Financial Corp.Target companyCompanyA Toronto-listed global asset and wealth management firm.
Jefferies Securities Inc.Financial AdvisorCompanyProviding financial advisory services to Mubadala Capital for the transaction.
Blake, Cassels & Graydon LLPLegal AdvisorCompanyOne of the legal advisors for Mubadala Capital.
Latham & Watkins LLPLegal AdvisorCompanyProviding legal advisory services to Mubadala Capital alongside Blake, Cassels & Graydon LLP.
Mubadala Investment CompanyParent CompanyCompanyThe Abu Dhabi sovereign wealth fund parent of Mubadala Capital.