All figures are in Canadian dollars unless otherwise noted. Readers are referred to the section entitled "Forward-Looking Statements" at the end of this release.

MONTRÉAL, Jan. 5, 2017 /CNW Telbec/ - Power Corporation of Canada (Power Corporation) (TSX: POW) today announced that it has entered into an agreement to acquire an additional 3.9% equity interest in China Asset Management Co., Ltd. (China AMC) for RMB¥936 million (Can$179 million). The seller, a Chinese state-owned enterprise, is a non-strategic investor. Together with a 10% interest purchased in 2011, Power Corporation's ownership in China AMC will be 13.9%.

China AMC was established in 1998 and was one of the first asset management companies approved by the China Securities Regulatory Commission. It is recognized as a leading company in the Chinese asset management sector, with RMB¥1.1 trillion (Can$215 billion) in assets under management, serving over 40 million retail investors and 400 institutional mandates as at June 30, 2016. China AMC is an affiliate of CITIC Group Corporation Ltd., China's largest conglomerate, with which Power Corporation has had an association since 1986.

"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," said Olivier Desmarais, Vice-President of Power Corporation. "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."

Mackenzie Financial Corporation (Mackenzie Investments), an indirect subsidiary of Power Corporation, also announced that it has agreed to acquire, in two separate transactions, a 13.9% interest in China AMC. Upon completion, Power Corporation and Mackenzie Investments will hold a combined 27.8% interest in China AMC. The transaction is expected to be accretive to Power Corporation's earnings.

"We are very pleased that Power Corporation has increased its ownership interest in China AMC," said Yang Minghui, Chairman of China AMC and President of CITIC Securities. "We look forward to continuing our relationship and shared interest in growing China AMC's business."

"We have great confidence in the leadership of China AMC and this investment allows Power Corporation to increase its exposure to the dynamic Chinese asset management market alongside CITIC Securities, China's largest securities dealer," added Peter Kruyt, Vice-President of Power Corporation and Chairman of Power Pacific Corporation Limited.

The transaction is expected to close in the first half of 2017 and is subject to customary closing conditions, including Chinese regulatory approvals. Power Corporation expects to finance the acquisition of the additional 3.9% interest through the issuance of debt and/or preferred shares.

ABOUT CHINA AMC

Founded in 1998 as one of the first fund management companies in China, China AMC has maintained a market leading position in China's asset management industry with total assets under management of approximately RMB¥1.1 trillion at June 30, 2016. The company currently serves over 400 institutional mandates and 40 million retail investors. China AMC has one of the industry's strongest investment teams with over 200 dedicated investment professionals. To learn more, visit www.ChinaAMC.com. 

ABOUT MACKENZIE INVESTMENTS

Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With Can$63.2 billion in assets under management as of November 30, 2016, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. To learn more, visit www.MackenzieInvestments.com.

ABOUT POWER CORPORATION

Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, communications and other business sectors in North America, Europe and Asia. To learn more, visit www.PowerCorporation.com.

Forward-Looking Statements

Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' disclosed current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, business competition, operational and reputational risks, technological change, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent Management's Discussion and Analysis and Annual Information Form, filed with the securities regulatory authorities in Canada and available at www.sedar.com.

SOURCE Power Corporation of Canada