CI Financial hits 9-yr high after Mubadala inks $8.7 bln take-private deal

CI Financial

25/11/2024 17:25

** Shares of Canadian asset and wealth manager CI Financial
 CIX.TO  jump 30.2% to C$31.26
    ** Stock trading at its highest since October 2015
    ** Abu Dhabi-based Mubadala Capital will take CIX private in
a C$12.1 bln ($8.66 bln) deal - CI Financial
    ** Mubadala will pay CIX shareholders C$32/shr, a 33% upside
to stock's last close
    ** Deal, expected to close in Q2 2025, values CI's equity at
about C$4.7 bln
    ** CEO Kurt MacAlpine will continue to lead CIX, which will
remain headquartered in Canada 
    ** CIX has been a divisive name among investors, given its
largely aggressive debt financed M&A expansion strategy to build
its U.S. wealth management platform - Scotiabank 
    ** Brokerage believes the approach aligns quite well for a
private equity player, adding that it sees a competing bid as a
low probability
    ** As of last close, CIX shares up 61.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))