- Category: Economic
- Published Monday, December 21, 2015
- CTV News
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.
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..