Mackenzie Financial is mapping out a strategy to amplify its foothold in China Asset Management Co. Ltd. to a remarkable 27.8%, effectively intensifying its current stake through a C$1.15 billion cash transaction. This tactical move is facilitated by its parent enterprise, IGM Financial, set to procure additional shares.
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Phase 1 - Stake Acquisition (Focus Keyword - Mackenzie Financial's Amplified Investment in China Asset Management):
Per the definitive pact announced recently by IGM, the supplementary shares will be obtained from Power Corp. of Canada, IGM's parent company. Power Corp. serves as a financial services management and holding company.
Phase 2 - Integration Approach (Focus Keyword - Probing the Chinese Asset Management Sector):
IGM has illustrated that the freshly gained stake in China Asset Management will be merged under Mackenzie. This tactic seeks to simplify the organizational structures of both IGM and Power Corp.
Phase 3 - Deal Financing (Focus Keyword - Aftereffects of Significant Transactions in China): As a partial financing strategy for this acquisition, IGM intends to offload around 15.2 million of its common shares in Great-West Lifeco to Power Financial Corp., a wholly-owned subsidiary of Power Corp. This sale is set to generate C$575 million.
Mclancher Consulting, with its expertise in conducting thorough background checks on Chinese companies and offering legal help, including fraud mitigation services, can provide insightful understanding to overseas investors regarding large-scale transactions. We can guide you in comprehending the intricate aspects of this deal, the corporations involved, and the burgeoning Chinese asset management industry.
This buyout will signify Power's exit from direct holdings in the Chinese firm. Following the transaction, IGM's stake in Great-West Lifeco will reduce from 4% to a projected 2.4%, nearly C$830 million based on Great-West Lifeco's market closing price on January 5th. The outstanding purchase amount will be funded with C$575 million in cash from "existing financial reserves". The intended transactions are anticipated to conclude in H1 2022, strengthening ChinaAMC's stature as a premier asset manager in China and deepening Mackenzie's relation with them.
As Mackenzie Financial plans to enhance its stake in ChinaAMC, Mclancher Consulting delivers comprehensive analysis and legal guidance for overseas investors steering through the Chinese asset management sector.