Power Financial

Power Financial Corporation has interests in companies in the financial services sector in Canada, the United States and Europe. While its parent company Power Corporation was originally established as an electric utility holding company, the company became a conglomerate with major interests in the finance industry.Founded in 1984 with the ambition of creating an integrated financial services group, Power Financial has remained committed to the growth and evolution of its primary holdings through its controlling interests in Great West Lifeco and IGM. Power Financial also has significant holdings in a portfolio of global companies based in Europe through its investment in Pargesa.The Nesbitt family sold most of their interest in Power Corporation to the Paul Desmarais group in 1968.R. Jeffrey Orr was named Power Financial Corporation CEO in 2005.By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies. Power Corporation also by 2009 had interests in the parent company of La Presse, Mackenzie Financial, London Life Insurance, Canada Life Assurance, Great-West Life, and Putnam Investments.

2020 reorganization

On December 13, 2019, Power Corporation announced a reorganization transaction through which each common share of Power Financial would be exchanged for 1.05 subordinate voting shares of Power Corporation and $0.01 in cash. Upon the completion of the reorganization transaction, on February 13, 2020, Power Corporation holds all of the common shares of Power Financial, which were delisted from the Toronto Stock Exchange effective as of the close of business on February 18, 2020. Power Financial remains a reporting issuer in all of the provinces and territories of Canada.

The share price for Power Corporation increased by 7.9% following the initial announcement of the transaction as the reorganization is expected to benefit shareholders by creating long-term value through:

Simplified and less costly structure with a reduction in operating expenses of $50M per year and a reduction in financial charges of $15M per year.

A more focused strategy emphasizing financial services.

Increased quarterly dividend by 10%