Mackenzie Financial Corporation Completed the acquisition of an additional 13.9% stake in China Asset Management Co., Ltd. from Power Corporation of Canada.
January 11, 2023
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Mackenzie Financial Corporation entered into definitive agreement to acquire an additional 13.9% stake in China Asset Management Co., Ltd. from Power Corporation of Canada (TSX:POW) for CAD 1.15 billion on January 5, 2022. The consideration shall be payable in cash. Post completion, Mackenzie Financial Corporation will hold 27.8% stake of China Asset Management Co., Ltd. To partially fund the transaction, IGM has agreed to sell 15,200,662 Great-West Lifeco Inc. (Great-West Lifeco) (TSX: GWO) common shares to a subsidiary of Power Financial Corporation (Power Financial or PFC), for aggregate consideration of CAD 575 million. The remaining part of consideration shall be funded through internal resources. The transaction will be subject to, among other things, approval by the China Securities Regulatory Commission and by certain other Chinese regulatory authorities. A special committee has been established by Board of Directors of IGM Financial Inc., parent of Mackenzie Financial Corporation comprising of independent directors to assess, review and supervise negotiations regarding the transaction. The special committee recommended to the Board of Directors to approve the transaction. Having received and considered the recommendation of the Committee, the Board unanimously determined that each of the transactions is in the best interests of IGM and approved the transactions. The transactions are expected to close in the first half of 2022. The transaction is expected to be accretive to Power Corporation of Canadaâs net asset value. BMO Capital Markets and Morgan Stanley are acting as financial advisors to Power Corporation of Canada. Blake, Cassels & Graydon LLP, and Baker McKenzie are acting as Power Corporation of Canadaâs legal advisors. RBC Capital Markets and Fasken Martineau DuMoulin LLP acted as financial and legal advisors to special committee of IGM Financial Inc., parent of Mackenzie Financial Corporation. Royal Bank of Canada also acted as fairness opinion provider to special committee of IGM Financial Inc., parent of Mackenzie Financial Corporation. Baker & McKenzie acted as legal advisor to IGM Financial.
Mackenzie Financial Corporation Completed the acquisition of an additional 13.9% stake in China Asset Management Co., Ltd. from Power Corporation of Canada (TSX:POW) on January 12, 2023.
Power Corporation of Canada is a Canada-based international management and holding company. The Company is focused on providing financial services in North America, Europe, and Asia. Its core holdings include insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. The Company operates through three segments: Lifeco, IGM Financial and GBL. Lifeco is a financial service holding company with interests in life insurance, health insurance, retirement and investment management services, asset management and reinsurance businesses primarily in Canada, the United States and Europe. IGM Financial is a wealth and asset management company supporting financial advisors and the clients they serve in Canada, and institutional investors through North America, Europe, and Asia. GBL is a Belgian holding company, which is focused on long-term and sustainable value creation.
Mackenzie Financial Corporation Completed the acquisition of an additional 13.9% stake in China Asset Management Co., Ltd. from Power Corporation of Canada.