CIBC selling stake in American Century investment firm for US$1B

TORONTO -- CIBC is selling its large minority stake in American Century Investments for about US$1 billion.

The Toronto-based bank (TSX:CM) estimates it will realize a gain of US$170 million, after taxes, when the transaction closes in the first half of 2016.

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CIBC president and chief executive Victor Dodig says the funds from the sale will add about 0.5 per cent to CIBC's Tier 1 equtiy, which was 10.8 per cent as of the end of October.

CIBC acquired its 41 per cent of the private investment management firm in August 2011 for US$848 cash.

The buyer is Nomura, one of Japan's biggest banking groups.

American Century, headquartered in Kansas City, Mo., has 1,300 employees that manage mutual funds and other products..



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