MacarthurCook will acquire National Australia Fund Management Limited for around $13 million.
NAFuM is the manager of the National Australia Mortgage Fund.
MacarthurCook sealed the deal with National Australia Financial Management Limited, a subsidiary of National Australia Bank Limited, late this week after months of negotiation following an extensive tender process.
The deal will bring approximately $475 million in funds under management and a further 7,800 clients to the company.
The tender process was managed by Goldman Sachs JBWere, on behalf of the National.
The acquisition will be funded by a combination of debt and equity.
A meeting of the Company’s shareholders is to be held on 17 December 2003 to approve a private placement of nine million shares in MacarthurCook at a price of 70 cents per share to Ascalon Capital Managers Limited (a subsidiary of St George Bank), specialist equity fund manager Acorn Capital Limited, The Myer Family Company Pty Limited and other clients of Austock Brokers.
The proposed share issue will result in Ascalon becoming the largest shareholder in MacarthurCook, holding 19.7% of the issued capital of the Company.
The deal is subject to shareholder approval.
