December 3, 2009 / 11:30 PM / 8 years ago

UPDATE 1-CI Financial to sell Blackmont unit to employees

* Capital markets operations of Blackmont Capital

* Terms of deal not disclosed

TORONTO, Dec 3 (Reuters) - CI Financial Corp (CIX.TO) said on Thursday it has agreed in principle with senior management of the capital markets operations of Blackmont Capital Inc to sell that business to a group of employees.

In October, CI agreed to sell a portion of Blackmont to Australian investment bank Macquarie Group (MQG.AX) for C$93.3 million ($88.3 million), while retaining Blackmont’s capital markets operations. [ID;nSYD510512]

Toronto-based Blackmont, which employs over 450 people, is one of Canada’s largest independent, full service investment dealers.

CI will transfer the capital markets operations of Blackmont to a wholly owned subsidiary named CI Capital Markets Inc, as soon as it receives required regulatory approvals for the new company and prior to the closing of the transaction with Macquarie.

CI said all employees of the Blackmont capital markets operations will continue to be employed by CI Capital Markets.

The terms of the deal were not disclosed.

$1=$1.06 Canadian Reporting by Euan Rocha; editing by Rob Wilson euan.rocha@thomsonreuters.com; +1 416 941 8185; Reuters Messaging: euan.rocha.reuters.com@reuters.net

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