Wilson loses out on Platinum LIC management
Wilson Asset Management has lost the bid to take over running the Platinum Capital (PMC) listed investment company, with shareholders opting for L1 Capital.
Both L1 Capital and Wilson had put forward non-binding indicative investment management agreement (IMA) proposals to replace Platinum and manage the portfolio in accordance with their own IMA for the company.
Wilson made a bid on 14 August to manage the trust using the same principles as it manages its WAM Global LIC with a focus on global mid, large and mega-cap companies.
“Under the new management agreement, Wilson Asset Management would manage the company’s investment portfolio using the investment strategy Wilson Asset Management employs for WAM Global Limited, including the research-driven and market-driven investment processes, with the investment strategy of the company to have a focus on mid, large and mega-cap companies in global markets.”
It also bid for Geoff Wilson, Richard Caldwell, and Julian Martin to join the board of the LIC.
However, in an extraordinary general meeting (EGM) on 1 October, shareholders in PMC opted for rival L1 Capital to take over management and voted for Rachel Grimes, Douglas Farrell, and David Gray to join the board.
It had previously been intended to merge the LIC with the open-ended Platinum International Fund Complex ETF, but the deal was scrapped after substantial shareholder L1 Capital and its holding company First Maven said they would be voting against it.
As a result, the board of Platinum Capital LIC opted to withdraw the scheme as the lack of support from L1 meant it is unlikely to reach the required 75 per cent approval threshold.
L1 Capital is in the process of merging with Platinum Asset Management after it was approved by Platinum shareholders last month, whereby the combined fund manager will be known as L1 Group. First mooted in May 2025, it will create a manager with $16.5 billion in assets under management.
The benefits of the deal for shareholder, as described by the firm, are:
- Exposure to a market-leading investment platform of listed equities and alternative investment strategies.
- Exposure to a growing, scalable, and well-diversified investment management business with a diversified client base across institutional, wholesale, high-net-worth (HNW), and retail investors in Australia and globally.
- Potential to deliver annual pre-tax net synergy and cost savings benefits of $20 million and to be materially EPS-accretive for shareholders. Specifically, the merger is expected to be double-digit EPS-accretive in the next 12 months following completion and over 30 per cent EPS-accretive for shareholders in the financial year 2027 (the first full fiscal year post-completion).
- Preservation of ongoing balance sheet strength to support investment in accretive growth opportunities.
AUTHOR
Laura Dew
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