The Globe and Mail reports in its Thursday edition that Great-West Lifeco is off-loading Putnam Investments to Franklin Templeton in a deal valued at $1.8-billion (U.S.), a fraction of what the insurer paid for the operation. The Globe's Clare O'Hara writes that the Franklin Templeton will initially pay Great-West $950-million (U.S.) to $1-billion (U.S.) in a combination of cash and stock. Franklin Templeton will issue 33.33 million shares to Great-West at closing and $100-million (U.S.) in cash six months after closing. Great-West's shares will represent a 6.2-per-cent interest in parent Franklin Resources, and it has agreed to hold at least 4.9 per cent of Franklin Resources for at least five years. Great-West chief executive officer Paul Mahon told The Globe: "The economic benefits to us will be the appreciation in the Franklin stock, which we think it's actually undervalued. We think there's real upside there, as well as the dividend throw-off that has a nice yield, plus some of the cash proceeds that will be unlocked." The deal with Franklin opens the door for Great-West to reap future value from the asset manager, which has been an underwhelming performer on Great-West's books for years.