GDG Acquires Remaining 61.9% of Lonsec for AU$197.4 million

Generation Development Group Limited (ASX: GDG) will acquire the remaining 61.9% of Lonsec Holdings Pty Ltd for $197.4 million. This move follows GDG's successful investment in Lonsec in 2020, aiming for full control and further growth potential. The acquisition will be funded by a AU$49.2 million Conditional Placement to Lonsec shareholders and an approximately AU$155.4 million Equity Raising through an Institutional Placement and Accelerated Non-Renounceable Entitlement Offer.

Lonsec has contributed significantly to GDG's performance and is expected to benefit from ongoing regulatory support. This acquisition enhances GDG’s prospects in the high-growth managed accounts market and is projected to positively impact earnings per share by FY25. The Equity Raising will also broaden GDG’s shareholder base, boosting institutional interest and liquidity.

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