CI Financial to Go Private in CAD 4.7 Billion Deal
Deal News | Nov 25, 2024 | Zawya
Mubadala Capital, a unit of the UAE-based Mubadala Investment Company, has made a strategic move to acquire and privatize CI Financial Corp., a Canadian asset and wealth management firm. The buyout offer is set at CAD32 per share, valuing CI Financial’s equity at approximately CAD4.7 billion (USD3.36 billion). This proposal accounts for a substantial premium of 33% over the latest closing price and 58% above the 60-day volume-weighted average price on the Toronto Stock Exchange. The deal implies an enterprise value of around CAD12.1 billion. CI Financial, which manages over CAD518 billion in assets, primarily operates in Canada, the U.S., and Australia. The acquisition awaits necessary regulatory and court approvals before completion. Advising on this significant transaction, Jefferies Securities Inc. serves as the lead financial advisor, with Blake, Cassels & Graydon LLP and Latham & Watkins LLP serving as legal advisors to Mubadala Capital.
Sectors
- Asset & Wealth Management
- Private Equity
Geography
- United Arab Emirates – Mubadala Capital, the acquirer, is based in the UAE.
- Canada – CI Financial, the company being taken private, is based in Canada.
Industry
- Asset & Wealth Management – The article focuses on Mubadala Capital's acquisition of CI Financial, a company prominent in asset and wealth management.
- Private Equity – Mubadala Capital's involvement as a private equity player exemplifies its role in significant investment transactions.
Financials
- CAD 4.7 billion – Valuation of CI Financial Corp. in the proposed private transaction.
- USD 3.36 billion – Approximate equivalent value in US dollars of the proposed equity transaction.
- CAD 32 per share – Offer price per share to CI Financial's shareholders.
- 58% – Premium to the 60-day volume-weighted average trading price.
- 33% – Premium over the most recent closing price.
- CAD 12.1 billion – Implied enterprise value of CI Financial.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mubadala Capital | Bidding Company | Company | An affiliate of Mubadala Investment Company, focusing on alternative investments. |
| CI Financial Corp. | Target Company | Company | A Canadian-based asset and wealth management firm. |
| Mubadala Investment Company | Parent Company | Company | The parent organization of Mubadala Capital, a sovereign wealth fund from Abu Dhabi. |
| Jefferies Securities Inc. | Lead Financial Advisor | Company | Advising Mubadala Capital on the transaction. |
| Blake, Cassels & Graydon LLP | Legal Advisor | Company | Providing legal advice to Mubadala Capital. |
| Latham & Watkins LLP | Legal Advisor | Company | Providing additional legal advice to Mubadala Capital. |