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Scotiabank Considers Sale Of Stake In Canadian Wealth Manager

Scotiabank is mulling the sale of some of its entire 37 per cent stake in wealth manager CI Financial Corp.
Canada’s Scotiabank
is considering the sale of some or its entire 37 per cent
investment stake in wealth manager CI Financial
Corp and will redeploy the capital to “other strategic
priorities”.
Scotiabank acquired its position in CI in 2008; its 37 per cent
of CI shares has a current market value of approximately $3.8
billion.
“There continues to be an important product relationship between
Scotiabank and CI, with CI sub-advising on $2.3 billion of mutual
fund product with access to Scotiabank's various distribution
channels,” Scotiabank said in a statement.
“Scotiabank intends to explore all options with respect to the
monetisation of some or all of its investment in CI over time.
This may include partial or full monetisation of its investment
in CI in one, or a series of transactions,” it added.
CI, meanwhile, is considering the implications of the
announcement and the impact it may have on the firm and its 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 monetisation plan Scotiabank seeks to
implement,” it said. “CI's clients, business partners and
shareholders can be assured that the bank's decision has no
impact on the management of CI or the strong fundamentals of its
business.”
“Scotiabank is entitled to dispose of their shares as they see
fit. As always, CI will work in the interests of all of our
shareholders and management will remain focused on the continued
success of our business,” said William Holland, CI chairman.
CI Financial is an independent, Canadian-owned wealth management
company with approximately $126 billion in assets as of 30 April,
2014.
Scotiabank and its affiliates offer a range of products and
services including personal and commercial banking, wealth
management, and corporate and investment banking.
With assets of $783 billion (as at 31 January, 2014), Scotiabank
trades on the Toronto and New York Exchanges.