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CI to purchase Sentry
Posted on Friday, 11 August 2017 07:53
Canadian asset manager CI Financial is acquiring Sentry Investments for CAD 780.00 million (USD 611.84 million) to expand business scale.
As consideration, the purchaser is paying CAD 230.00 million in cash and issuing CAD 550.00 million-worth of new shares.
Subject to regulatory approvals, completion is expected to follow on or around 29th September this year.
Founded in 1997, Sentry is an investment firm based in Toronto with about CAD 19.10 billion of assets under management (AUM) as of 31st July 2017.
It offers a range of mutual funds, including those that invest in real estate, commodities and fixed income.
Listed on both the Toronto Stock Exchange and the OTC Bulletin Board, CI Financial is billed as one of the largest asset managers in Canada with AUM of about CAD 160.50 billion as of 31st July 2017.
The group provides wealth planning services and operates a wide variety of mutual funds via its subsidiaries CI Investments, Assante Wealth Management, CI Private Counsel, Great Samuel Funds Management and First Asset Capital.
CI Financial posted revenue of CAD 510.30 million in the three months ended 30th June 2017, up 7.2 per cent on the CAD 475.90 million recorded during the same timeframe in the previous year.
Net income attributable to shareholders totalled CAD 96.30 million, compared to CAD 128.60 million in the corresponding period of 2016.
CI has appointed Blake Cassels & Graydon as an advisor, while CIBC World Markets and Davies Ward Phillips & Vineberg are assisting Sentry.
The transaction comes as the purchaser is in the processing of buying back CAD 335.63 million worth of its own shares, which account for 4.8 per cent of its enlarged capital.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 475 deals targeting investment managers announced or completed worldwide since the beginning of this year.
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