Shares of Power Corporation of Canada (TSX: POW) spiked nearly 10% on Friday, following the news of a proposed buyout of Power Financial Corporation (TSX: PWF) as the Desmarais brothers retire.
This streamlined organization intends to eliminate the dual-holding company structure and emphasize financial services. POW will own all of PWF’s common shares, while PWF’s preferred shares and debt securities will remain outstanding.
Power Corporation, a diversified international management and holding company, holds interests in companies in the financial services, asset management, sustainable and renewable energy, and other business sectors in North America, Europe and Asia.
While the family will remain in control, Paul Desmarais, Jr. and André Desmarais will retire as Co-Chief Executive Officers of Power Corporation after 23 years in the roles and to continue to serve as Chairman and Deputy Chairman, respectively, of Power Corporation's Board of Directors. R. Jeffrey Orr, President and Chief Executive Officer of Power Financial, to become President and Chief Executive Officer of Power Corporation.