The Caisse de dépôt et placement du Québec has announced a $500 million equity investment in Manulife Financial.
The insurer will use the proceeds to help finance the purchase of Standard Life’s Canadian unit.
Edinburgh, Scotland-based Standard Life decided to withdraw from Canada earlier this year and put its operation up for sale. Manulife announced on Wednesday that it would pay nearly $4 billion for the Canadian division.
“In making this acquisition, Manulife intends to draw on the expertise of Standard Life in Montreal to speed up its growth,” says Caisse president and CEO Michael Sabia.
“By capitalizing on these strengths, Manulife is committed to reinforcing Montreal as a financial centre,” he adds. “This promise, coupled with the prospect of attractive returns for our clients, are the reasons why we have decided to invest in this transaction.”
The investment brings the Caisse’s interest in Manulife to more than $1 billion, making it one of the company’s biggest shareholders.
“This transaction strengthens our partnership with a financial services leader,” Sabia says, “and will enable us to pursue a continuing dialogue with a financial services company committed to playing a key role in Quebec.”
Related articles: