CI Financial Corp. announced that it is planning to sell the institutional side of Blackmont Capital Inc. to a group of employees.

Back in October, CI reached a deal to sell Blackmont to Macquarie Group, but it hung onto the capital markets business in that deal. CI said it will now sell that business to a group of the firm’s employees.

CI plans to transfer the capital markets operations of Blackmont to CI’s newly-created, wholly-owned, subsidiary, CI Capital Markets Inc., as soon as it receives regulatory approval for the new company, and prior to the closing of the transaction with Macquarie. The employees of the capital markets operations of Blackmont will continue to be employed by CI Capital Markets and the company will continue to provide research, sales and trading services to institutional clients, and investment banking services to corporate clients.

In January, a group of employees, led by Blackmont’s senior management, intends to acquire all of the outstanding shares of CI Capital Markets. CI said that it 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 CI’s chief executive, Bill Holland.

“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 of CI Capital Markets.