CI Financial is going private

Shareholders to get $32 per share in cash, a 33% premium relative to the last closing price

CI Financial Corp. has entered an agreement with Abu Dhabi-based Mubadala Capital to go private. The deal values CI’s equity at roughly $4.7 billion, which implies an enterprise value of $12.1 billion. Mubadala Capital is  the alternative asset management division of Mubadala Investment Company, a sovereign wealth fund.

Shareholders will receive $32 per share in cash — a premium of 33% relative to the last closing price and 58% better than the 60-day volume-weighted average trading price, according to a media release. CI will continue operations under the existing management team and will work independent of Mubadala Capital’s other business lines.

Kurt MacAlpine will continue to lead CI as chief executive officer and director. He’s been in that role since 2019.

“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, in the release. “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.”

CI has bet big on wealth management in the U.S., under its Corient brand. Close to half of its $518 billion in assets under management reside south of the border, as of Sept. 30, 2024.

“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.

The deal is subject to court and regulatory approval. It is expected to close in Q2 2025.