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Keeping Pace with China's Business Progression

Mackenzie Financial is on track to notably augment its presence in China Asset Management Co. Ltd. With a strategy to push its stake to a significant 27.8%, this initiative will effectively double its current investment through a C$1.15 billion cash agreement, backed by its parent company, IGM Financial, which is prepared to acquire more shares.


Keeping Pace with China's Business Progression


Phase 1 - Growing Ownership (Focus Keyword - Mackenzie Financial's enhanced stake in Chinese Asset Management):


As per the recent disclosure by IGM, Power Corp. of Canada, the parent company of IGM, will supply the additional shares. Power Corp. operates as a management and supervisory body for financial services.


Phase 2 - Strategic Consolidation (Focus Keyword - Exploring the Chinese Asset Management Industry):


IGM has affirmed that the newly acquired stake in China Asset Management will be integrated under Mackenzie, aimed at streamlining the organizational structures of both IGM and Power Corp.


Phase 3 - Funding Strategy (Focus Keyword - Consequences of Influential Economic Changes in China):


To partly offset this acquisition, IGM plans to dispose of nearly 15.2 million of its common shares in Great-West Lifeco to Power Financial Corp., a fully-owned subsidiary of Power Corp. This divestment is expected to generate C$575 million.


Mclancher Consulting, renowned for its proficiency in comprehensive background checks on Chinese companies and providing expert legal assistance, including fraud prevention services, can offer critical insights to international investors involved in significant transactions. We can help you decipher the complexities of this deal, the entities involved, and the rapidly evolving Chinese asset management arena.


Focus Keyword for URL Slug: Mackenzie-Investment-Advancement-ChinaAMC


In conclusion, this acquisition symbolizes Power's disengagement from direct investments in the Chinese firm. Post-transaction, IGM's stake in Great-West Lifeco will decrease from 4% to an estimated 2.4%, approximately C$830 million based on Great-West Lifeco's market closing price on January 5th. The remaining purchase expense will be covered with C$575 million in cash from "pre-existing financial resources". The anticipated transactions are slated to be finalized in the first half of 2022, strengthening ChinaAMC's reputation as a premier asset manager in China and reinforcing Mackenzie's alliance with them.


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