Magellan Financial Group’s chairman, Andrew Formica, has called on shareholders to back the company’s proposed merger with Barrenjoey Capital Partners. Formica describes the move as a “significant step in MFG’s evolution”, highlighting the potential for creating a more robust and diversified financial entity. Magellan Financial Group is an Australian-based global fund manager. The company provides investment management services to retail, high net worth and institutional investors.
According to Formica’s letter accompanying the Notice of Meeting, the transaction aims to establish “a diversified, client-focussed Australian financial services group, with a proven talent base across investment management, corporate finance, equities, fixed income and capital markets.” The merger involves Magellan acquiring the outstanding Barrenjoey shares it doesn’t currently possess.
The deal will involve issuing 106.8 million MFG shares to Barrenjoey shareholders. This issuance represents a substantial 57.5 per cent increase in MFG’s total share count. Following the merger’s completion, existing Magellan shareholders are projected to hold approximately 63.5 per cent of the combined group.
The leadership structure of the merged entity will see David Gonski appointed as the independent chairman, with Andrew Formica transitioning to the role of deputy chair. Brian Benari is slated to become the Group CEO. Shareholders are scheduled to vote on the proposed merger on April 10.
