Canada's fund industry is also seeing more M&A. Monday, Scotiabank
picked up a 37 percent interest in CI Financial Income Fund
from Sun Life
for $2.3 billion. The transaction is all-cash and is expected to close in the fourth quarter.
Sun Life also has an U.S. subsidiary, MFS Investment Management
Company Press Release
TORONTO, Oct. 6 /PRNewswire-FirstCall/ - Sun Life Financial Inc. (TSX/NYSE: SLF) today announced the sale of its 37% interest in CI Financial Income Fund for $2.3 billion to Scotiabank in an all cash, private transaction.
Donald A. Stewart, Chief Executive Officer, Sun Life Financial said, "Sun Life is well positioned to take advantage of unprecedented opportunities existing within the global financial services sector today. Unlocking CI's value now provides Sun Life with enhanced firepower to aggressively pursue our growth objectives."
Rick Waugh, Scotiabank President and CEO, said, "Sun Life is the leading distributor of CI mutual funds and the manufacturer of the highly successful SunWise Elite Plus line of segregated funds. We look forward to building a relationship with them."
Bill Holland, Chief Executive Officer, CI Financial Income Fund, added, "Our partnership with Sun Life has been highly successful in delivering tremendous growth for both Sun Life and CI, and we look forward to our ongoing strong product and distribution partnership. We welcome Scotiabank as a new partner and look forward to working with them on new opportunities for growth."
Sun Life Financial continues to have industry-leading scale with over $400 billion of assets under management as at June 30, 2008, and remains committed to pursuing its growth strategy in asset management.
The definitive agreement in respect of this transaction is subject to the satisfaction or waiver of customary closing conditions, including the receipt of all applicable regulatory approvals. The transaction is expected to close in the fourth quarter.
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