Magellan Financial in process to sell its 11.6% in Guzman y Gomez Limited

Magellan Financial Group Ltd (ASX:MFG) has entered into an agreement into regarding the sale of its 11.6% interest in Guzman y Gomez Limited to a Barrenjoey Capital Partners entity with the objective of seeding an investment trust including high net worth investors for cash consideration of AU$140 million. The Company would be entitled to a further payment of up to AU$6 million conditional on the performance of GYG plus the realisation of the investment by the trust.

The sale conditional upon the completion of a pre-emptive rights process under the GYG shareholders’ deed which provides GYG shareholders with the right to purchase MFG’s shares on the same terms.

Completion of the transaction will be in two tranches, the first in June 2022 and the second in July 2022.

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