Canada-based multinational financial services company Scotiabank is considering sale of minority or all of its stake in the country’s largest independent asset manager, CI Financial.

Scotiabank

The lender said in a statement that it has decided to explore options for monetization of some or all of its investment in CI Financial, which sub-advises on $2.3bn of mutual fund product with access to the bank’s various distribution channels.

"This may include partial or full monetization of its investment in CI in one, or a series of transactions," the bank added, without offering any assurances for completion of any transaction.

"The capital associated with its investment in CI will be redeployed to other strategic priorities of the Bank."

Having acquired its position in CI from Sun Life Financial in late 2008, the Toronto-based lender currently holds 37% of CI shares with a current market value of approximately $3.8bn.

Scotiabank chief operating officer Sarabjit Marwah was quoted by Financial Post as saying that the sale would free up the capital, which will allow the bank to use it for more profitable investments, including in further potential acquisitions.

Commenting on Scotiabank announcement, CI said the company will review its capital structure and dividend policy to ensure it can adequately respond to any monetization plan Scotiabank intends to implement.

CI Financial Chairman Bill Holland said: "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."

The bank has retained its capital markets subsidiary, Scotia Capital and Goldman Sachs & Co. to advice on the monetization plan.

Image: Scotiabank is exploring options for sale of some or all of its 37% stake in CI Financial. Photo: Verne Equinox.