CI Financial taken private by Mubadala Capital

CI Financial, which owns most of GSFM, is being acquired by Mubadala Capital, a subsidiary of the United Arab Emirates' sovereign wealth fund.

CI Financial, which is listed on the Toronto Stock Exchange, will be taken private by Mubadala Capital in a deal that values CI's equity at $5.17 billion and implies an enterprise value of about $13.3 billion.

CI Financial operates primarily in Canada, the US, and Australia. In Australia, it owns most of $9.83 billion GSFM, having purchased Grant Samuels' stake in 2016. Mubadala Capital, meanwhile, is the alternative assets arm of the UAE's Mubadala Investment Company - one of its sovereign wealth funds.

All CI Financial shares will be acquired for $35.17 per share in cash, excluding shares held in equity agreements with staff. This represents a 33% premium to the last closing price, CI Financial said.

CI's board has unanimously endorsed the deal to shareholders, saying it's in their best interests. Under the deal, CI Financial will operate as a standalone business and retain its current structure and management team.

"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," CI Financial lead director William E. Butt said.

"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."

Kurt McAlpine, chief executive of CI Financial, said Mubadala Capital will provide stability and certainty for its clients and employees.

"With this transaction, CI has never been better positioned to fulfil our mission of delivering outstanding services and solutions to our clients," he said.

CI Financial added that the transaction will materially benefit Canada, including through the fact it will remain headquartered there, added employment opportunities, and a commitment from Mubadala Capital to continue the firm's philanthropic support of Canadian charities.