(August 14 – 16:45 ET) – Is perennial takeover candidate Mackenzie Financial Corp. on the acquisition trail? From reading its annual report you might think so.
Mackenzie insists that it isn’t for sale, although it admits to being widely rumoured for a takeover it insists, “As a matter of record, we have never received a credible offer. As a matter of policy, the company is not ‘for sale’.”
Indeed Mackenzie hints that it may find itself on the buy side in some deal. “In a financial world of increasing consolidation, we believe one of our most important strengths at Mackenzie is the proven ability to add value to acquisitions.”
The company points to its acquisition of the Universal Funds as an example. But this deal came way back in 1993. Could it be that Mackenzie is hungry again? It points to its strong balance sheet, noting, “using internally generated capital we will be able to continue to underwrite manageable acquisitions, strategic partnerships and future product innovations.”
While it offers no specific plans on the acquisition front, Mackenzie does lay out its goals for fiscal 2001. It will focus on cost-cutting efforts, such as integrating the back office systems of MRS and Mackenzie. It also plans to launch funds managed by British-based Premier Asset Management, which it bought 25% of last year, for distribution through MRS and for Mackenzie-managed funds to be distributed through Premier’s European distribution network. It promises “fundamental changes to the mandates and management” of the Industrial funds.
In the face of dealer consolidation Mackenzie sees new distribution opportunities at the banks and through the insurance business. Its struggling value-focused funds offered by U.S. subsidiary Mackenzie Investment Management will be “reshap[ed] … by repositioning certain international funds to be more growth oriented.” It also plans to merge eight MIMI funds into four.
-IE Staff