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January 6, 2022

IGM Financial unit to increase ChinaAMC holding in $900m deal

By Verdict Staff

Canadian asset manager IGM Financial is set to double its stake in China Asset Management Co (ChinaAMC) through its subsidiary Mackenzie Financial.

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Mackenzie will acquire a 13.9% stake in ChinaAMC from Power Corporation of Canada (PCC) for $900.55m (C$1.15 billion) in cash.

The deal would double Mackenzie’s holdings in the firm to 27.8%.

IGM will partially finance the transaction by divesting 15.2 million shares in Great-West Lifeco to PCC for a cash consideration of C$575m.

The remainder of the deal price will be paid using the firm’s existing financial resources, it said.

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

Deal Rationale

ChinaAMC, which was founded in 1998, is a unit of PCC. It managed CAD$309bn in assets as of 30 June 2021.

The deal is expected to help IGM tap into the rapidly evolving Chinese asset management space and consolidate the ChinaAMC ownership position at Mackenzie while simplifying IGM and PCC organisation structure.

Furthermore, it is expected to create business opportunities between Mackenzie and ChinaAMC as Mackenzie looks to develop globally diversified and differentiated solutions for its clients and bolsters distribution opportunities in China.

IGM expects the deal to be accretive to its earnings in the first year of increased ownership.

Comments

IGM Financial president and CEO James O’Sullivan said: “We believe that an expanded investment in ChinaAMC – one of the top three asset managers in the country – is strategically important to position IGM Financial for further growth.”

Mackenzie Investments president and CEO Barry McInerney said: “Since our original acquisition of an interest in ChinaAMC in 2017, we have built sales relationships in excess of $1 billion between our two companies. We believe our increased investment in ChinaAMC and its market will amplify opportunities going forward.”

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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