Mubadala Capital’s $8.7bn bid to privatise CI Financial

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Mubadala Capital, the Abu Dhabi-based alternative asset manager, has made an all-cash offer of C$12.1 billion ($8.66 billion) to privatise CI Financial, a 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.

The purchase price represents a 33 percent premium to Friday’s closing price before the announcement and a 58 percent premium to the 60-day volume-weighted average trading price on the Toronto Stock Exchange.

“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees,” said CI chief executive Kurt MacAlpine.

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MacAlpine will roll over his equity as part of the transaction. Senior management who hold up to 1.5 percent of the company’s shares and chairman William Holland, who holds a 25 percent stake, are also expected to participate in equity rollover agreements.

The transaction intends to supports CI’s expansion in the US, where it operates under the Corient brand.

Founded in 1965, CI Financial operates in Canada, the US, and Australia, managing nearly C$518 billion in client assets as of September 30, 2024.

Mubadala Capital, a subsidiary of Mubadala Investment Company, manages $24 billion of assets under management.