Canada’s largest independent asset manager has found itself a buyer on the other side of the world.
What happened: Canadian asset manager CI Financial is being taken private by Abu Dhabi-based Mubadala Capital in a deal that values the Toronto firm at $4.7 billion — a hefty 33% premium on Friday’s share price.
- As part of the deal, CI Financial will continue to operate independently in Canada and hold on to its current management team.
- Mubadala Capital — an arm of the sovereign wealth fund Mubadala Investment Company — has been on a North American spending spree as of late, including a US$3 billion deal for U.S. firm Fortress Investment Group.
Why it matters: With C$518 billion in assets, CI Financial is no small fish. If approved, the deal will mark one of the largest direct investments into North America by a Middle Eastern buyer.
What’s next: The acquisition will need to be greenlit by Ottawa as well as U.S. regulators. Given the federal government's recent crackdown on foreign investments, particularly by state-owned businesses, the deal will likely face scrutiny.—LA