SYDNEY: Australian investment firms Platinum Asset Management Ltd and L1 Capital have agreed to a merger, adding to a flurry of recent deal activity involving money managers in the country.
Under the proposal, Platinum will acquire 100% of L1’s share capital and issue new Platinum stock to existing L1 shareholders, according to a statement.
Following the merger, L1 shareholders will hold 74% of the merged group, with existing Platinum shareholders holding the rest. The merged group will manage around A$16.5bil of assets.
Platinum has been attempting a turnaround strategy and has fielded other takeover offers following a tumultuous period that’s seen large customer outflows.
Under the agreement, Platinum will be renamed and the combined company will remain listed on the Australian stock exchange.
Shares of Platinum rose as much as 2% yesterday, giving it a market capitalisation of about A$297mil, 95% below its 2015 peak. Australia has seen several efforts to clinch deals among asset managers.
That included overseas firms Bain Capital and CC Capital Partners battling to buy Insignia Financial Ltd, as well as KKR & Co earlier pursuing the purchase of part of Perpetual Ltd.
L1 Capital, led by founders Raphael Lamm and Mark Landau, is a global investment manager. It was established in 2007 and is owned by its senior employeess. — Bloomberg
