, Australia
255 views

Magellan Financial Group agrees to sell stake in Guzman y Gomez

The transaction is expected to be completed in two tranches in June and July, generating an estimated pre-tax profit on the sale of $34 million in FY22.

Magellan Financial Group announced it has agreed to sell its 11.6% stake in Guzman y Gomez for $140 million, roughly a year and four months after investing in the fast food business.

In an announcement sent to the ASX, the company said it offloaded the shares to an entity of Barrenjoey Capital Partners, in which Magellan has a 40 per cent stake, made with the intention of seeding an investment trust comprising high net worth investors.

Magellan may also be entitled to a further payment of up to $6 million, subject to GYG’s performance and the realisation of the investment by the trust.

"GYG is an outstanding company, however, the sale of our shareholding is consistent with our strategy to focus on our core funds management business," Magellan chairman Hamish McLennan said in the update. "The upfront sale price represents a 36.3 per cent premium to our entry price in January 2021. We believe the sale is an excellent outcome for Magellan shareholders.”

The sale is also subject to the completion of a pre-emptive rights process under the GYG shareholders' deeds, giving them the right to purchase Magellan's shares on the same terms. The transaction is expected to be completed in two tranches in June and July, generating an estimated pre-tax profit on the sale of $34 million in FY22. 

Proceeds will be used to support Magellan’s ongoing capital management initiatives, the announcement added.

“GYG continues to go from strength to strength and we are pleased that Magellan have been able to get a strong return on their investment for their shareholders,” Guzman y Gomez founder and CEO Steven Marks said in a separate statement.

Follow the link for more news on

Join QSR Media Australia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Schnitz turns to tiered pricing to combat cost pressures, reach valuable Gen Z
In his first interview with QSR Media, CEO Brenton Howie details the chain’s customer satisfaction play and why he believes in “doing the basics well.”