Magellan shares lift as shareholders approve merger with Barrenjoey
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The news: Magellan Financial Group shares edged higher as shareholders approved its merger with Barrenjoey Capital Partners.
The numbers: Magellan shares were up 0.75% to $9.41 by 1:05pm AEDT. Over the last 12 months shares have surged 29.44%.
The context: The company held its extraordinary general meeting on Friday, which saw 91.16% of proxy votes cast in favour of the deal prior to the meeting.
Another 7.75% voted against the merger as proxy advice firm Ownership Matters advised shareholders to do so given the lack of information around Barrenjoey’s balance sheet. Magellan provided the information following Ownership Matters’ concerns.
The merger is subject to Australian Competition and Consumer Commission approval and Hong Kong regulatory approval.
What they said: On the balance sheet disclosure, Magellan chair Andrew Formica said: “There were many who urged us to do [disclose] that. As you imagine, those conversations were quite late towards their own voting.
“So they happened in the week prior to Easter, and as we didn’t believe there was anything in there — we had seen that, utilised that — but if it made it helpful to shareholders, we release it.
“We apologise for the timing of its release, but it was still well ahead of the proxy closing, which was the following Wednesday, at 11am, and shareholders [have] commented to us that they appreciate it.”
The sources: ASX, Magellan EGM
