Magellan Financial and Barrenjoey Capital to merge
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The news: Magellan Financial Group has entered into an agreement to merge with Barrenjoey Capital Partners, expected to complete in the second quarter of 2026.
The transaction implies a $1.6 billion value for Barrenjoey, with total consideration of $903 million for the shares Magellan is expected to acquire.
The context: Following the merge, Magellan said it plans to fund an initial increase economic interest in Barrenjoey through a non-underwritten institutional placement of ordinary shares, alongside a follow-on non-underwritten share purchase plan for eligible shareholders.
Upon completion, Magellan will own 100% of Barrenjoey’s issued capital. Current Magellan shareholders are expected to hold 58.2% of the merged entity, while placement shareholders would own 5.3%.
The board has unanimously recommended that shareholders vote in favour of issuing the consideration shares to fund proposed merger at the upcoming general meeting scheduled for April 2026.
What they said: “MFG [Magellan Financial Group] has been part of our journey from the beginning of Barrenjoey as a founding investor. Joining forces provides an ideal platform for our next phase of growth together as a top tier financial services group, while ensuring our clients and our people remain at the centre of everything we do,” Barrenjoey non-executive chairman David Gonski said.
The source: ASX
