Magellan exits Guzman y Gomez
Fund manager Magellan has confirmed it has sold one of its more controversial investments – its 11.6% stake in food chain, Guzman y Gomez.
The Guzman y Gomez stake was one of the investments which prompted criticism of former Magellan boss Hamish Douglass.
Magellan told the Australian Securities Exchange (ASX) today that it has entered into an agreement with Barrenjoey Capital Partners which has the intention of seeding an investment trust comprising high net worth investors for cash consideration of $140 million.
It said Magellan might also be entitled to a further $6 million subject to the performance of Guzman y Gomez and the realisation of the investment by the trust.
Explaining the move, Magellan chairman, Hamish McLennan said Guzman y Gomez was an outstanding company “however the sale of shareholding is consistent with our strategy to focus on our core funds management business”.
He said the upfront sale price represented a 36.3% premium on Magellan’s entry price in January, last year.
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