The Lowy family has emerged as a cornerstone investor in Magellan Financial Group (ASX:MFG), securing a 5.1% stake following the firm's $1.6 billion merger with investment bank Barrenjoey.
The move, executed through a strategic placement, reinforces the family's longstanding ties to both entities as Magellan absorbs the bank to create a bolstered financial services powerhouse.
Steven Lowy, principal of the Lowy Family Group, confirmed the investment "with immediate effect," citing the merged entity's potential as a "sound long-term investment."
The family office, which manages the wealth generated from the $35.7 billion sale of the Westfield empire in 2017, has maintained a presence as a shareholder in Magellan’s $40 billion funds management business.
The merger structure includes a $130 million institutional placement and a $20 million share purchase plan for retail investors, priced at $8.46 per share.
Prior to the deal, Magellan already held a 36.4% interest in Barrenjoey.
Upon completion, the ownership architecture of the "new" Magellan will see Barrenjoey and Barclays holding 31.7% and 4.9% respectively, while existing Magellan shareholders retain a 63.5% majority.
At the time of reporting, Magellan Financial's share price was $10.85.