Great-West Lifeco Inc., announced May 31 that it has entered into an agreement to sell Putnam Investments to Franklin Templeton, also known as Franklin Resources Inc.
The company says the deal facilitates its continued focus on U.S. retirement and personal wealth. Great-West will hold a 4.9 per cent interest in Franklin Templeton and has agreed to retain the shares for a minimum of five years. The company also retains its controlling interest in PanAgora, along with certain deferred tax assets related to Putnam.
According to the company’s announcement, Franklin Templeton will pay between US$950-million and US$1-billion, consisting of 33.33-million Franklin Templeton shares on May 31, US$100-million six months after closing and up to US$375-million between three and seven years after close, “tied to the growth of the partnership,” they state.
That partnership, also announced May 31, will see Great-West, Power Corporation of Canada (Great-West’s parent company) and Franklin Templeton in a strategic partnership to distribute Franklin Templeton products, “for the benefit of clients, distribution partners and shareholders.” Great-West will allocate US$25-billion in assets under management within 12 months. It says there is also potential to increase that amount in coming years.
The transaction is expected to close in the fourth quarter of 2023. At the end of January 2023, Putnam had more than US$170-billion in assets under management.
