In an ASX listing on Wednesday, Magellan confirmed it is launching an on-market share buyback of up to 10 million ordinary fully paid shares, representing up to 5.4 per cent of shares on issue.
The firm is looking to “enhance value for shareholders” following a rocky couple of months sparked by Hamish Douglass’ unexpected exit in February.
The wounded fund manager lost 35 per cent of its share value in 2022 and 70 per cent over the last 12 months.
“We believe the on-market buyback announced today represents an effective way to enhance value for shareholders,” said Hamish McLennan, Magellan’s chairman.
“The buyback is consistent with our aim to deliver capital efficiency, solid dividends and attractive returns for shareholders with a focus on our core funds management business.”
The buyback will be funded from Magellan’s existing cash and financial assets.
Magellan has appointed Barrenjoey Markets Pty Limited and Ord Minnett Limited to act as its brokers. However, the firm warned that the timing and actual number of shares purchased will depend on the prevailing share price, market conditions and other relevant factors.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
