Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Scotiabank to Raise $2.4 Billion in CI Financial Sale

May 28 (Bloomberg) -- Bank of Nova Scotia will raise as much as C$2.62 billion ($2.4 billion) selling two-thirds of its stake in CI Financial Corp. as it seeks to unwind its investment in the Toronto-based money manager.

Scotiabank will sell 72 million CI shares in a so-called “bought deal” for C$31.60 each, the Toronto-based bank said today in a statement. CI closed at C$33.65 today in Toronto. In a bought deal, banks managing the secondary sale will be left holding any unsold shares.

“They advised us that they want to sell and we have been very accommodating in making sure that we do what’s necessary for them to offer their shares to the public,” said Bill Holland, chairman of CI Financial.

Scotiabank, Canada’s third-biggest lender, said May 14 that it plans to scale back or sell its 37 percent stake in CI Financial, which it valued at C$3.8 billion at the time. The sale will leave it with as little as 7.7 percent. The bank will post a pretax gain from the sale of as much as C$440 million in the fiscal third quarter.

Scotiabank, Royal Bank of Canada and GMP Capital Inc. are leading the sale and the banks, have an option to buy an additional 10.8 million shares at the closing.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net; David Scanlan at dscanlan@bloomberg.net Jacqueline Thorpe, David Scanlan

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.