TSX Symbol: CIX
TORONTO, Dec. 3 /CNW/ - CI Financial Corp. ("CI") announced today that it has entered into an agreement in principle with senior management of the capital market operations of Blackmont Capital Inc. to sell that business to a group of employees.
As previously announced on October 26, 2009, CI entered into an agreement to sell Blackmont to Macquarie Group, with CI retaining Blackmont's capital markets operations. CI will transfer the capital markets operations of Blackmont to CI's newly created wholly owned subsidiary CI Capital Markets Inc., as soon as it receives required regulatory licences for the new company, and prior to the closing of the transaction with Macquarie. All employees of the capital markets operations of Blackmont will continue to be employed by CI Capital Markets and the company will continue to provide independent research, experienced equity sales coverage and specialized trade execution to institutional clients, together with investment banking services to corporate clients. The head office of CI Capital Markets and its principal place of business will continue to be located on the ninth floor of 181 Bay Street, Toronto.
A group of employees, led by senior management, intends to acquire all of the outstanding shares of CI Capital Markets in January 2010 following receipt of any necessary approvals and satisfaction of other closing conditions. CI will continue to provide support to CI Capital Markets during a transition period following closing.
"We are pleased to assist the employees in acquiring the capital markets business of Blackmont and believe this is a great opportunity for them," said William T. Holland, CI Chief Executive Officer.
"We are very excited about becoming an employee-owned firm and we appreciate the support and confidence that CI has demonstrated in us through this transaction," said Jeff White, who will be Chief Executive Officer of CI Capital Markets. "We look forward to providing the same quality independent research, sales and trading and investment banking services to our institutional and corporate clients as we grow our business."
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $87.6 billion in fee-earning assets at November 30, 2009. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.
SOURCE CI Financial Corp.
For further information: For further information: Stephen A. MacPhail, President, CI Financial Corp., (416) 364-1145