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Magellan and Barrenjoey to Merge in $1.6 Billion Deal

The tie-up pairs Magellan’s balance sheet with Barrenjoey’s rising investment-banking profits to reset the fund manager’s growth story.

Overview

  • Barrenjoey staff are set to own about 31.7% of the enlarged group, with a small stake retained by Barclays.
  • Co-executive chairmen Matthew Grounds and Guy Fowler will be the largest individual shareholders under a nine-year escrow.
  • Magellan originally seeded Barrenjoey with $150 million for a 36% stake, a bet that paved the way for today’s reversal.
  • Barrenjoey’s profit nearly doubled in the six months to December as Magellan’s share price fell more than 77% over five years.
  • Investor reaction will be tested when Magellan shares resume trading on Tuesday, with market response and integration execution seen as near-term uncertainties.