Mubadala to take Canada’s CI Financial private in about $8.7 billion deal

(Reuters) -Mubadala Capital, Abu Dhabi’s sovereign wealth fund, will take CI Financial private in a C$12.1 billion ($8.66 billion) all-cash deal, including debt, the Canadian asset and wealth manager said on Monday.

Mubadala will pay CI Financial C$32 per share, representing a more than 33% upside to the stock’s Friday close.

Global mergers and acquisitions, outside the United States, have seen an uptick in 2024 due to an improved financing market.

Deals announced worldwide in 2024 totaled $846.8 billion as of Sept. 25, 14% more than the year-ago period, according to data from Dealogic.

“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CI’s clients and employees,” CI’s CEO Kurt MacAlpine said in a statement.

CI Financial’s shares have gained about 62% this year. In May 2023, the company sold a 20% stake in its U.S. wealth management arm to Bain Capital LP and other investors for C$1.34 billion.

($1 = 1.3978 Canadian dollars)