Blakes, Stikeman Elliott, Wildeboer Dellelce, Koffman Kalef, BD&P among legal counsel
Deal: Abu Dhabi’s Mubadala signs deal to take CI Financial private
Value: $4.7 billion
This week’s deals roundup kicks off with Mubadala’s $4.7 billion agreement to take CI Financial private, signaling a bold move in the investment sector. Blakes, Stikeman Elliott, Wildeboer Dellelce, Koffman Kalef, and BD&P are among the legal counsel in this week’s roundup.
CI Financial Corp. entered into an agreement with an affiliate of Mubadala Capital, the alternative asset management arm of Mubadala Investment Company, to take CI private in a deal valued at approximately $4.7 billion.
Stikeman Elliott LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as Canadian and US legal counsel, respectively, to CI. RBC Capital Markets is also an advisor to CI.
Wildeboer Dellelce LLP is serving as legal counsel to the special committee, with INFOR Financial as the exclusive financial advisor.
Blake, Cassels & Graydon LLP and Latham & Watkins LLP are serving as Canadian and US legal counsel, respectively, to Mubadala Capital, with Jefferies Securities Inc. as the lead financial advisor. BMO Capital Markets is also an advisor to Mubadala Capital.
The all-cash deal offers CI shareholders $32 per share, representing a 33 percent premium over the last closing price and a 58 percent premium over the 60-day volume-weighted average trading price on the Toronto Stock Exchange.
“This transaction, with its significant cash premium, represents an exceptional outcome for CI shareholders and provides certainty to shareholders while CI pursues its ongoing transformation,” said CI’s lead director and chair of the special committee William E. Butt. “It also provides significant benefits to Canada, by providing long-term capital to underpin the building of a Canadian champion in the wealth and asset management industries.”
Mubadala Capital managing director and CEO Hani Barhoush said, “We are fully aligned with the strategy and direction of the firm and look forward to working with the CI management team to continue to build this outstanding business and ensure that CI continues to deliver superior services to its clients.”
Following the acquisition, CI Financial will maintain its current structure and management team, with CEO Kurt MacAlpine continuing to lead the company. The firm will operate independently from Mubadala Capital's other portfolio businesses and retain its Canadian headquarters.
The deal is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions.
Vancouver-based Endeavour Silver Corp. closed its previously announced financing deal valued at approximately $102 million (US$72.8 million).
BMO Capital Markets led the offering, together with a syndicate of underwriters consisting of CIBC World Markets Inc., TD Securities Inc., Ventum Financial Corp. and H.C. Wainwright & Co., LLC.
Koffman Kalef LLP and Dorsey & Whitney LLP served as Canadian and US legal counsel, respectively, to Endeavour.
Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP served as Canadian and US legal counsel, respectively, to the underwriters.
Proceeds of the deal are set to be used to develop Endeavour’s Pitarrilla project in Durango State, Mexico.
Pitarrilla is a large undeveloped silver, lead and zinc project that comprises 4,950 hectares across five concessions. It has significant infrastructure in place, with direct access to utilities. Pitarrilla has secured necessary permits for underground mining and development, including water use, explosives, land use and environmental approvals.
Since acquiring the project in July 2022, Endeavour Silver has re-logged the historic drill core, refurbished an existing underground ramp and extended it over 1.3 kilometers to test high-grade feeder structures.
Calgary-based Logan Energy Corp. agreed to acquire a 50 percent operated working interest and overriding royalties in Montney assets at Simonette, Alberta, from a subsidiary of Gran Tierra Energy Inc. for $62.8 million (including adjustments and liabilities). The acquisition represents a strategic move to accelerate development in the prolific Montney Formation, one of Canada’s most promising energy-producing regions.
To fund the deal, Logan launched a $35 million bought-deal private placement led by National Bank Financial Inc. and Eight Capital.
Stikeman Elliott LLP is serving as legal counsel to Logan while Burnet, Duckworth & Palmer LLP is representing the underwriters.
“This strategic partnership with a top-tier operator, who already has established infrastructure in the area, will significantly accelerate development and generate near-term cash flow,” said Gran Tierra president and CEO Gary Guidry. “We intend to use a portion of the proceeds to deliver value to our shareholders through development of other key assets in the portfolio and share buybacks, while also strengthening our balance sheet by reducing net debt. This transaction validates Gran Tierra’s position as a top-tier growth focused mid cap E&P company.”
The agreement grants Gran Tierra priority access and preferential terms for Logan-owned infrastructure, strengthening the collaboration between the two companies under the joint venture.
The deal is expected to close by the end of 2024, subject to customary closing conditions.
