MONEY MANAGEMENT

Mackenzie to acquire 10% stake in China Asset Management Co.

Canadian currency
Canadian currency

Mackenzie Financial Corp., a Winnipeg, Manitoba-based affiliate of holding company Power Financial Corp. Group, will acquire a 10% stake in Beijing-based China Asset Management Co. for roughly 2.4 billion renminbi ($346 million).

A news release from Mackenzie's parent company, IGM Financial, said the deal is expected to close during the first half of 2017. Mackenzie also has the option to purchase an additional 3.9% equity stake in January through another purchase agreement.

Mackenzie will acquire the stake from a non-strategic shareholder. A spokesman for China Asset Management Co. couldn't immediately identify the shareholder. Trish Tervit, a spokeswoman for Mackenzie, couldn't be reached for comment.

With the purchase, the Power Financial group's combined stake in China Asset Management will come to 20%. Power Financial purchased an initial 10% stake in the firm in August 2011 for roughly $270 million.

China Asset Management is a leading fund management company on the mainland, with assets under management of roughly 1.1 trillion renminbi as of June 30.

Mackenzie has C$63.2 billion ($46.7 billion) in assets under management.