Magellan confirms buy-back
Just days after confirming $5 billion in outflows, Magellan Financial Group has announced it will be proceeding with an on-market share buy-back of up to 10 million ordinary fully paid shares representing up to 5.4% of those on issue.
The possibility of the buy-back was flagged as part of the company’s interim results briefing in mid-February, with Magellan chairman, Hamish McLennan today stating the company believed it represented an effective way to enhance value to shareholders.
“The buy-back is consistent with our aim to deliver capital efficiency, solid dividends and attractive returns to shareholders with a focus on our core funds management business,” he said.
The company said the buy-back would be funded from Magellan’s existing cash and financial assets.
It has appointed Barrenjoey Markets and Ord Minnett to act as its brokers.