Mubadala Capital, the alternative asset manager of Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, plans to take CI Financial private, according to an announcement by the Canadian asset and wealth manager.
The UAE company has made an all-cash offer of C$12.1 billion ($8.66 billion), including debt, to privatise the Canadian asset and wealth manager.
As part of the agreement, all issued and outstanding shares of CI will be acquired for C$32 per share in cash, except for shares held by senior management members participating in equity rollover agreements, including those of CI CEO Kurt MacAlpine and Chairman William Holland, with the latter holding a 25% stake in the company.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees,” MacAlpine said.
The purchase price represents a 33% premium to Friday’s closing price before the announcement and a 58% premium to the 60-day volume-weighted average trading price on the Toronto Stock Exchange.
The company will continue to be headquartered in Canada, CI explained. The transaction intends to support CI’s expansion in the US, where it operates under the Corient brand.
Founded in 1965, CI Financial manages nearly C$518 billion in client assets as of September 30, 2024. The company’s shares have surged about 62% this year. Previously, in May 2023, the company sold a 20% stake in its US wealth management division to Bain Capital LP and other investors for C$1.34 billion.
Due to its size, the CI acquisition requires approval from Canadian and US regulators.
