01:37:19 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



CI Financial Corp
Symbol CIX
Shares Issued 257,761,847
Close 2017-10-02 C$ 27.66
Market Cap C$ 7,129,692,688
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CI Financial completes $780M acquisition of Sentry

2017-10-02 15:00 ET - News Release

Mr. Murray Oxby reports

CI FINANCIAL COMPLETES ACQUISITION OF SENTRY INVESTMENTS

CI Financial Corp. has completed its $780-million acquisition of Sentry Investments Corp. and its subsidiary Sentry Investments Inc. The addition of Sentry has increased CI Financial's assets under management to approximately $140-billion and total assets (assets under management plus assets under advisement) to approximately $181-billion.

"We are very excited by the opportunities presented by the combined strength of two of Canada's largest independent asset managers," said Peter Anderson, CI Financial's chief executive officer. "The addition of Sentry expands our product offering and brings new adviser and client relationships to our firm. Our greater size and scale will allow for additional investments in operations, product development and enhanced service to our clients."

In addition, Mr. Anderson said that CI Financial expects the acquisition to be accretive to earnings per share immediately, with full synergies being achieved by 2019.

Since the announcement of the acquisition on Aug. 10, 2017, CI Financial has secured long-term financing at attractive rates with the successful completion on Sept. 27, 2017, of a debenture offering with an aggregate principal amount of $250-million. The debt securities have a term of 10 years and carry an interest rate of 3.904 per cent payable semi-annually. The acquisition has been financed with $230-million from the debenture offering and the balance is being paid in CI Financial shares.

CI Financial's balance sheet remains strong and CI forecasts that its debt-to-earnings-before-interest-taxes-depreciation-and-amortization ratio will be approximately 1:1 by the end of the year. This level leaves the company with the capacity for leverage to finance additional initiatives.

EBITDA (earnings before interest, taxes, depreciation and amortization) and debt to EBITDA are not standardized measures prescribed by international financial reporting standards; however, CI Financial believes that these financial measures provide information that is useful to investors in understanding CI's performance and facilitate a comparison of results from period to period. These non-IFRS measures and reconciliations to IFRS, where necessary, are included in management's discussion and analysis in CI Financial's annual and quarterly reports available at the company's website.

About CI Financial Corp.

CI Financial is an independent Canadian company offering global asset management and wealth management advisory services. Its primary operating businesses are investment managers CI Investments Inc. and Sentry Investments Corp., advisory businesses Assante Wealth Management and Stonegate Private Counsel, Grant Samuel Funds Management of Australia, and First Asset Investment Management, a leader in providing actively managed exchange-traded funds to the Canadian marketplace. Further information is available at the company's website.

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