Mubadala Capital has reached a landmark agreement to acquire CI Financial Corp., a Canada-based asset and wealth management giant, in a deal valued at approximately CA$12.1 billion ($8.7 billion). The transaction, announced Monday, takes CI private and reflects the involvement of five major law firms.
Mubadala Capital acquires CI Financial : Terms of the Agreement
Under the deal, Mubadala Capital, the alternative asset management arm of Abu Dhabi’s Mubadala Investment Company, will acquire all outstanding shares of CI Financial at CA$32 per share in cash. This price represents a 33% premium over CI’s closing stock price prior to the announcement, valuing the company’s equity at roughly CA$4.7 billion.
CI Financial, which operates in Canada, the U.S., and Australia, oversees about CA$518.1 billion in client assets as of its latest disclosure. The firm recently sold a 20% minority stake in its U.S. wealth management business for $1 billion, signaling its strategy to expand and streamline operations ahead of this transaction.
Legal Counsel Behind the Deal
The deal involved a cadre of top-tier legal advisors:
- CI Financial’s special committee was represented by Wildeboer Dellelce LLP.
- Mubadala Capital was advised by Blake Cassels & Graydon LLP in Canada and Latham & Watkins LLP internationally.
- CI Financial received further counsel from Stikeman Elliott LLP and Skadden Arps Slate Meagher & Flom LLP.
The legal teams included prominent partners across various practice areas, such as M&A, regulatory compliance, tax, and antitrust. The detailed structuring underscores the deal’s complexity, reflecting the global scale of both CI and Mubadala Capital.
Mubadala Capital acquires CI Financial : Strategic Implications
William E. Butt, CI Financial’s lead director and chair of its special committee, emphasized the benefits of the transaction for shareholders and Canada’s financial sector.
