IGM Financial Arm to Raise Stake in ChinaAMC for $901m

Canadian asset management firm IGM Financial Inc said on Wednesday its subsidiary Mackenzie Financial Corp will acquire a 13.9% stake in China Asset Management Co in a C$1.15 billion ($900.55 million) cash deal.

Mackenzie, which will buy the stake from Power Corporation of Canada (PCC), will see its interest in ChinaAMC double to 27.8% following the deal, IGM said. ChinaAMC is a unit of PCC.

IGM — a subsidiary of PCC’s unit Power Financial — said it will sell 15.2 million shares in Great-West Lifeco Inc to PCC for a cash consideration of C$575 million, to partially fund the transaction. It will pay the balance of C$575 million in cash by tapping into its existing financial resources.

“We believe that an expanded investment in China Asset Management is strategically important to position IGM Financial for further growth,” its President and CEO James O’Sullivan said.

IGM currently holds 37.3 million shares or 4% of the outstanding Lifeco shares, according to its statement.

The transactions are expected to close in the first half of 2022.

Reuters with additional editing by Jim Pollard

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.