MFG and Barrenjoey proposed merger
Key points
- Innovative financial services group with $40 billion in assets under management
- Global distribution capabilities across three continents
- Institutional grade platform to support investment management businesses
Full summary
Magellan Financial Group Ltd (MFG) has proposed to acquire all of the remaining issued capital in Barrenjoey Capital Partners Group Holdings Pty Limited (Barrenjoey) that it does not already hold. The proposed merger will create a diversified client-focused financial services group with a proven talent base across investment management, corporate finance, equities, fixed income and capital markets. MFG is an innovative financial services group with $40 billion in assets under management, global distribution capabilities across three continents, and an institutional grade platform to support its investment management businesses. Barrenjoey is a specialist in advisory, capital markets, equities, research, fixed income and private capital, with 463 employees globally. The combined entity will have a diversified revenue base across complementary businesses, including annuity-style revenue from investment management and transaction-based revenue from markets, capital markets and advisory. Key highlights of the proposed merger include MFG's 100% ownership of Barrenjoey, with MFG's investment management business contributing 16% of the combined group's LTM PBT, and Barrenjoey contributing 28% of the combined group's LTM PBT.
Guidance
The proposed merger is expected to result in the combined group having LTM PBT of $139 million as of 31 December 2025, pending satisfaction of conditions precedent, including shareholder and regulatory approvals.
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