Early Warning Filing by Desmarais Family Residuary Trust in connection with Acquisition of Participating Preferred Shares of Power Corporation of Canada and Completion of Previously Announced Reorganization Transaction by Power Corporation of Canada and Power Financial Corporation

MONTRÉAL, Feb. 13, 2020 /CNW Telbec/ - On February 13, 2020, Power Corporation of Canada ("PCC") and Power Financial Corporation ("PFC") announced the completion of a previously-announced reorganization transaction (the "Transaction") pursuant to which each common share of PFC held by holders of PFC common shares other than PCC and its wholly-owned subsidiaries was exchanged for 1.05 Subordinate Voting Shares of PCC and $0.01 in cash. PCC announced that it had issued 250,628,173 additional Subordinate Voting Shares in the Transaction and 6,006,094 Participating Preferred Shares upon exercise of the pre-emptive right (the "Pre-Emptive Right") in favour of holders of Participating Preferred Shares of PCC included in PCC's articles on February 12, 2020, the initial closing date for the Pre-Emptive Right offer.

The Desmarais Family Residuary Trust (the "Trust") announces today that the Trust, through Pansolo Holding Inc. ("Pansolo"), a corporation controlled by the Trust, acquired 6,000,000 Participating Preferred Shares from PCC pursuant to its partial exercise of the Pre-Emptive Right on February 12, 2020 at a price of $34.27 per share ($205,620,000 in aggregate).

Immediately before the triggering of the requirement to issue this news release and file an early warning report (and without giving effect to the Transaction or acquisition of any shares under the Pre-Emptive Right), the Trust exercised control over Pansolo which, directly and indirectly, owned 48,697,962 Participating Preferred Shares and 48,363,392 Subordinate Voting Shares of PCC, which represented 99.68% and 12.81%, respectively, of the outstanding shares of such classes and 61.81% and 22.76%, respectively, of the votes associated with, and quantity of, the total outstanding voting shares of PCC.

Immediately after the triggering of the requirement to issue this news release and file an early warning report and completion of the Transaction (giving effect to the issuance by PCC of 250,628,173 Subordinate Voting Shares in the Transaction and 6,006,094 Participating Preferred Shares upon initial exercise of the Pre-Emptive Right, as announced by PCC, and the acquisition by Pansolo of 6,000,000 Participating Preferred Shares from PCC pursuant to its partial exercise of the Pre-Emptive Right), the Trust exercised control over Pansolo which, directly and indirectly, owns 54,697,962 Participating Preferred Shares and 48,363,392 Subordinate Voting Shares of PCC, which represent 99.70% and 7.70%, respectively, of the outstanding shares of such classes and 50.58% and 15.09%, respectively, of the votes associated with, and quantity of, the total outstanding voting shares of PCC.  The Trust and Pansolo did not directly or indirectly acquire any Subordinate Voting Shares of PCC in the Transaction.

Participating Preferred Shares acquired pursuant to exercise of the Pre-Emptive Right were acquired for investment purposes.  The Trust may, from time to time, directly or indirectly, take such actions in respect of holdings in securities of PCC as it may deem appropriate, in light of the circumstances then existing, including the purchase of additional Participating Preferred Shares or Subordinate Voting Shares or the disposition of all or a portion of its direct or indirect shareholdings in PCC, subject in each case to applicable securities laws and the terms of such securities.

The head office address of Power Corporation of Canada is 751 Square Victoria, Montréal, Québec H2Y 2J3.  The Trust's address is 759 Square Victoria, Suite 520, Montréal, Québec H2Y 2J7. An early warning report will be filed by the Trust in accordance with applicable securities laws and will be available at www.sedar.com or by contacting the contact person noted below.

SOURCE Desmarais Family Residuary Trust