Power Corporation of Canada and its affiliate Mackenzie Financial have both raised their stakes in China Asset Management (China AMC), a unit of Chinese conglomerate CITIC Group.
China AMC served over 40 million retail investors and 400 institutional mandates and managed RMB1.1 trillion in assets as at 30 June 2016.
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Mackenzie Financial, a subsidiary of IGM Financial, agreed to acquire an additional 3.9% interest in China AMC in a deal worth RMB936m ($135m).
The move comes shortly after Mackenzie Investments’ purchase of a 10% interest in China AMC, thereby boosting IGM’s interest in the Chinese asset manager to 13.9% for a combined RMB3.34bn ($481.6m).
Power Corporation, the indirect parent of IGM, agreed to acquire an additional 3.9% interest in the Chinese asset manager for RMB936m ($135m).
Power Corporation previously acquired a 10% interest in China AMC in 2011, which takes its total interest in the asset manager to 13.9%.
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By GlobalDataBoth the deals are anticipated to be completed in the first half of 2017, subject to regulatory approvals.
Power Corporation vice-president Olivier Desmarais said: "This is an important addition to our portfolio in China, investing in the fast-growing asset management sector and in one of the best companies in its class.
"Through this transaction, we are building on Power Corporation's long-standing presence in China and deepening our 30-year relationship with the CITIC Group of companies."
