Abu Dhabi-based Mubadala Capital, the alternative asset management arm of Mubadala Investment Company, has agreed to take CI Financial private in a CAD12.1bn ($8.66bn) all-cash deal, including debt, the Canadian asset and wealth manager announced on Monday.
Under the terms of the deal, shareholders will receive CAD32.00 in cash per share, representing a premium of 33% over the last closing price and 58% over the 60-day volume-weighted average trading price.
Following news of the deal, CI Financial’s shares surged nearly 30%, reaching close to Mubadala’s offer price. The sharp rise reflects investor confidence in the transaction, which CI Financial says will bolster its ongoing expansion in the United States, where it operates under the brand Corient.
Following the closing of the transaction, CI will continue to operate with its current structure and management team and will be independent of Mubadala Capital’s other portfolio businesses.
CI’s Board of Directors, with interested directors abstaining, has unanimously recommended that CI shareholders vote in favour of the transaction following the unanimous recommendation of a special committee of the Board, comprised solely of independent directors, that was formed in connection with the transaction.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees,” said Kurt MacAlpine, CI’s Chief Executive Officer, in a press statement. “With this transaction, CI has never been better positioned to fulfil our mission of delivering outstanding services and solutions to our clients.”
Hani Barhoush, Managing Director and CEO of Mubadala Capital, said: “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.”
Advisory firms INFOR Financial and Jefferies Securities served as financial advisers for CI Financial and Mubadala, respectively.
