Power Corporation of Canada (PCC) and Power Financial Corporation (PFC) announced the execution of a definitive agreement to effect a reorganization transaction (the "Reorganization") pursuant to which each common share of PFC ("PFC Common Shares" or "Power Financial Common Shares") held by holders of PFC Common Shares other than PCC and certain of its affiliates (the "PFC Minority Shareholders" or "Power Financial Minority Shareholders"), will be exchanged for 1.05 subordinate voting shares of PCC ("PCC Subordinate Voting Shares" or "Power Corporation Subordinate Voting Shares") and $0.01 in cash. Upon completion of the Reorganization, PCC will own all of the PFC Common Shares, while PFC preferred shares and debt securities will remain outstanding. The Reorganization will simplify the group's corporate structure and serve as the foundation and catalyst for a broader set of strategic initiatives expected to deliver further value to shareholders.

The Boards of Directors of PCC and PFC each have unanimously approved the Reorganization and the Board of Directors of PFC (the "PFC Board"), based on the unanimous recommendation of the Special Committee, has agreed to unanimously recommend that PFC Minority Shareholders vote in favour of the Reorganization. The Reorganization is expected to benefit shareholders of PCC and PFC by creating long-term value: Simplified Corporate Structure: The Reorganization will eliminate the current dual-holding company structure and consolidate ownership of the group's financial services operating companies, while concurrently reducing organizational complexity. Focus on Financial Services: PCC's strategy will emphasize financial services, including the businesses of PFC and the investment platform businesses of PCC.

PFC's Operating Companies: Commitment to value creation at each of Great-West Lifeco Inc., IGM Financial Inc. and Pargesa Holding SA, PFC's leading insurance, retirement, wealth management and investment franchises. PCC's Investment Platforms: PCC has built investment platforms that manage portfolios on behalf of PCC and third- party investors in several alternative asset classes where PCC has a competitive advantage. PCC will continue to prioritize the development of these investment platforms. PCC also owns majority control of several standalone businesses, which will be managed to realize value over time.