October 24, 2017 / 1:17 PM / a year ago

Investor urges Power Corp to sell C$10 billion in assets

TORONTO, Oct 24 (Reuters) - Diversified holding company Power Corp of Canada should offload a number of non-core assets that could fetch about C$10 billion ($7.9 billion), a shareholder told Reuters late on Monday, in a move to unlock shareholder value.

Graeme Roustan, who owns less than 1 percent of Power Corp, said in a letter to the company chairman that the group should sell assets including its interests in Pargesa Holding SA , renewable energy unit Power Energy and asset manager China AMC, among others.

The letter, which was reviewed by Reuters, did not mention the value of the assets to be offloaded.

“(The non-financial services) investments represent an important element of our long-term diversification strategy,” Power Corp spokesman Stéphane Lemay said, adding that the value of these investments had increased to C$3.2 billion at the end of 2016 from C$1.8 billion at the end of 2011.

Montreal-based Power Corp’s businesses span the insurance, asset management, renewable energy and media industries.

Roustan, the former chairman of Performance Sports Group Ltd, has in the past called for changes at Canadian drugmaker Aeterna Zentaris Inc.

$1 = 1.2637 Canadian dollars Reporting by John Tilak; Editing by Susan Thomas

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