The Lowy Family, prominent Australian rich listers, have acquired a 5.1 per cent stake in Magellan Financial Group. This move comes after Magellan announced its merger with investment bank Barrenjoey, a deal valuing Barrenjoey at $1.6 billion. The Lowy Family expressed a long-standing connection with Magellan, noting their history as both a shareholder and an investor in its funds. Magellan Financial Group is an Australian-based global fund manager. The company provides investment management services to retail, high net worth and institutional investors.
Steven Lowy stated, “We also have longstanding relationships with the senior team at Barrenjoey and have followed their progress since its establishment.” He further explained the family’s decision to become a cornerstone shareholder in Magellan through the recent placement, viewing the merged entity as a sound long-term investment. Before the merger was unveiled, Magellan already held a 36.4 per cent stake in Barrenjoey.
The merger deal includes a $130 million placement to Magellan’s institutional shareholders. There is also a share purchase plan for existing retail shareholders amounting to $20 million, priced at $8.46 per share. The structure of the merged entity will see significant ownership distribution.
Upon completion of the merger, Barrenjoey will own 31.7 per cent and Barclays will hold 4.9 per cent of the new Magellan. The remaining 63.5 per cent of the company will be held by Magellan’s existing shareholders, marking a significant shift in the company’s ownership structure.
