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Press release from CNW Group

Power Corporation of Canada announces successful bid for 10% stake in leading Chinese asset management company

Thursday, August 11, 2011

Power Corporation of Canada announces successful bid for 10% stake in leading Chinese asset management company08:57 EDT Thursday, August 11, 2011MONTREAL, Aug. 11, 2011 /CNW Telbec/ - Power Corporation announced today that its bid to purchase 10% of China Asset Management Co. Ltd. (China AMC) from its current owner, CITIC Securities Co. Ltd. (CITIC Securities), has been accepted for an amount equivalent to approximately CDN $276 million. This purchase is the result of a competitive process.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 the leading company in the Chinese asset management sector, with approximately US$35 billion in assets under management (excluding annuity and separate accounts) at December 31, 2010."We are pleased to become associated with CITIC Securities and China AMC. This investment represents a unique opportunity for Power Corporation to participate in an industry-leading fund manager in one of the world's largest economies, where there is growing demand for financial services," said Paul Desmarais, Jr., Chairman and Co-Chief Executive Officer of Power Corporation.André Desmarais, Deputy Chairman, President and Co-Chief Executive Officer of Power Corporation added: "Power has had a long-standing commitment to the Chinese market. This investment is also consistent with Power's commitment to seeking opportunities in the wealth management and retirement savings industry."Funding for the transaction will come from Power Corporation's internal liquidities. The transaction is expected to close by the end of the year and is subject to Chinese regulatory approvals and certain other conditions.For additional information, please consult China AMC's website ( and CITIC Securities' website ( 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.For further information: Mr. Edward Johnson Senior Vice-President, General Counsel and Secretary 514-286-7400