Bank of Nova Scotia plans to close its 37% strategic investment in CI Financial Income Fund next week, the bank announced Tuesday.

Scotiabank is purchasing Sun Life Financial’s stake of 104,609,895 CI trust units for $1.55 billion in cash, $500 million in common shares at $34.60 per share and $250 million in 6.25% rate reset preferred shares.

Following the completion of the deal, Scotiabank will have ownership of, or control over 104,783,954 units, representing approximately 37.6% of the outstanding units of CI. In addition, Scotiabank will be CI’s largest single shareholder and represented on the CI board of directors.

“This transaction demonstrates Scotiabank’s ongoing commitment to growing our wealth management business,” said Rick Waugh, president and CEO of Scotiabank, in a release. “A strategic investment in CI gives us a significant stake in a market leader and complements Scotiabank’s excellent wealth management products and services.”

Sun Life will continue to have a strong distribution arrangement with CI, said Scotiabank group head, Canadian banking, Chris Hodgson.

CI is Canada’s number three mutual fund company by assets under management.

IE