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

Reuters01:25

** Shares of Canadian asset and wealth manager CI Financial

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;))

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