Canada-based Sun Life Financial has announced the sale of its 37% interest in CI Financial Income Fund for $2.3 billion to Scotiabank in an all cash, private transaction.

The definitive agreement in respect of this transaction is subject to the satisfaction or waiver of customary closing conditions, including the receipt of all applicable regulatory approvals. The transaction is expected to close in the fourth quarter of 2008.

Donald Stewart, CEO of Sun Life Financial, said: Sun Life is well positioned to take advantage of unprecedented opportunities existing within the global financial services sector today. Unlocking CI’s value now provides Sun Life with enhanced firepower to aggressively pursue our growth objectives.

Bill Holland, CEO of CI Financial Income Fund, added: Our partnership with Sun Life has been highly successful in delivering tremendous growth for both Sun Life and CI, and we look forward to our ongoing strong product and distribution partnership. We welcome Scotiabank as a new partner and look forward to working with them on new opportunities for growth.