GDG shares rise on strategic alliance with BlackRock
Make us a preferred source
Make us a preferred source on Google
More news: Generation Development Group shares rose in early trading after announcing BlackRock had taken a minority stake in the investment firm following a strategic alliance with its subsidiary Generation Life.
GDG shares were up 4.84% to $4.58 by 10:12am AEST. Over the past 12 months its shares have risen 110.65%.
The strategic alliance will see BlackRock and Generation Life co-design and distribute an income stream product for retirees.
BlackRock takes stake in Generation Development Group under strategic alliance
The news: Generation Development Group’s Generation Life subsidiary has formed a strategic alliance with BlackRock to launch a retirement product in a deal that will also see BlackRock acquire a minority stake in GDG.
The context: The two parties will co-design and distribute an income stream product called Holistic Retirement Solutions to help retirees transition from accumulation to decumulation.
The product is expected to launch over the coming year.
As part of the deal, BlackRock will acquire a $25 million minority stake in GDG through a share subscription at $4.15, a discount to its last closing price of $4.34. Shares will be subject to a five-year lock-up with customary carve-outs.
What they said: GDG chief executive Grant Hackett said: “This transformational relationship brings together Generation Life’s innovation in retirement income with BlackRock’s global scale and expertise, delivering solutions that address the evolving needs of Australian retirees while creating long-term value for advisors, superannuation funds, and shareholders”.
The source: ASX
