Scotiabank is looking to sell some or all of its 37% interest in CI Financial.
The bank says that the capital associated with its investment in CI will be redeployed to “other strategic priorities.”
“Scotiabank intends to explore all options with respect to the monetization of some or all of its investment in CI over time,” according to a statement. “This may include partial or full monetization of its investment in CI in one, or a series of transactions. There can be no assurance that any transaction will be completed.”
CI is now considering the implications of the announcement and the impact it may have on CI’s other shareholders.
“As part of this, CI intends to review its capital structure and dividend policy to ensure that it has the appropriate resources available to respond to any monetization plan Scotiabank seeks to implement,” says a statement from CI.
At the end of April, CI had assets under management of $97.3 billion and total assets of $125.8 billion.
Scotiabank acquired its stake in CI in 2008 from Sun Life Financial.
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