Australia's Magellan to buy Barrenjoey at implied value of $1.1 billion

March 2 (Reuters) - Australia's Magellan Financial Group MFG.AX said on Monday that it will acquire all the issued shares of Barrenjoey Capital Partners that it does not currently own at an implied value of A$1.62 billion ($1.14 billion).

Magellan, currently holding about 36% of economic interest in the financial services platform Barrenjoey, said that the remaining shares would have an implied total consideration of A$903 million.

This value excludes the A$148.9 million Magellan will pay Barclays for an additional economic interest of around 10% in Barrenjoey.

"The merger with Barrenjoey marks a transformative step in MFG’s evolution, bringing together two highly complementary businesses to create an Australian financial services group with meaningful scale and breadth," said MFG Chairman Andrew Formica.

Magellan announced a share placement to raise up to A$130 million at A$8.45 per share to fund the transaction with Barclays.

It also announced a non-underwritten share purchase plan aiming to raise A$20 million at the same offer price.

Magellan Financial said its board unanimously recommends that shareholders vote in favour of the share issue to fund the proposed merger at the extraordinary general meeting to be held in April 2026.

Meanwhile, Magellan will issue 106.8 million shares to Barrenjoey shareholders at completion as the consideration for the merger.

Following the completion of the deal, Magellan shareholders would own 58.2% of the merged entity, placement shareholders 5.3%, Barrenjoey shareholders 31.7%, and Barclays about 4.9%.

The deal is expected to close in the second quarter of 2026.

($1 = 1.4188 Australian dollars)