Magellan to buy Barrenjoey in 1.14 billion dollar deal

MAGELLAN FINANCIAL GROUP LTD announced on Monday that it will acquire all issued shares it does not currently own in Barrenjoey Capital Partners at an implied value of A$1.62 billion ($1.14 billion). The firm, headquartered in Australia, currently holds a 36% economic interest in the financial services platform and noted that the remaining shares represent an implied total consideration of A$903 million. This valuation excludes a separate A$148.9 million payment to Barclays PLC for an additional economic stake of approximately 10% in the entity. To facilitate the transaction with Barclays, Magellan will raise up to A$130 million through a share placement at A$8.45 per share, alongside a non-underwritten share purchase plan aiming for A$20 million. At the completion of the merger, Magellan will issue 106.8 million shares to Barrenjoey shareholders as consideration. The resulting ownership structure will see Magellan shareholders holding 58.2% of the merged entity, Barrenjoey shareholders with 31.7%, placement participants at 5.3%, and Barclays with 4.9%.