Platinum Asset Management confirms the Independent Expert's valuation of its proposed merger with L1 Capital remains unchanged after reviewing updated financials, with the Board unanimously recommending shareholder approval.
- Independent Expert maintains original valuation after updated FY25 financials review
- L1 Capital confirms management and performance fees consistent with prior disclosures
- Platinum Board unanimously recommends shareholder approval of merger
- Extraordinary General Meeting scheduled for 22 September 2025
- Directors intend to vote in favor absent a superior proposal
Merger Valuation Confirmed
Platinum Asset Management Limited (ASX – PTM) has provided a significant update on its proposed merger with First Maven Pty Ltd, trading as L1 Capital. Following the release of Platinum's audited full-year financial results for 2025 and an advanced draft of L1 Capital's unaudited accounts, the Independent Expert, Grant Thornton Corporate Finance, has reaffirmed its original valuation and opinion on the merger. This confirmation comes without the need for any supplementary report, signaling stability in the financial assessment underpinning the deal.
Financials and Fee Confirmation
L1 Capital has disclosed that its total management fees and performance fees for the 12 months ending 30 June 2025 exceeded $75 million and $90 million respectively. Notably, the Long Short strategy alone generated approximately $82.5 million in performance fees, aligning with previous disclosures made in the Notice of Meeting and Explanatory Memorandum. These figures underscore the robust revenue streams that the merged entity is expected to harness.
Board Endorsement and Shareholder Meeting
The Platinum Board continues to unanimously recommend that shareholders vote in favor of the merger resolutions at the Extraordinary General Meeting scheduled for 22 September 2025. Directors have committed to voting their shares in support of the merger, provided no superior proposal emerges. This unified stance from the Board adds weight to the merger’s prospects and signals confidence in the strategic benefits anticipated from combining the two firms.
Looking Ahead
As the Extraordinary General Meeting approaches, shareholders will weigh the Independent Expert’s reaffirmed valuation alongside the financial disclosures and Board recommendations. The merger promises to create a stronger asset management entity with enhanced fee-generating capabilities, but the final outcome hinges on shareholder approval and any potential competing offers.
Bottom Line?
With the Independent Expert’s valuation intact and the Board’s full backing, all eyes now turn to the shareholder vote that will decide the merger’s fate.
Questions in the middle?
- Will any superior proposal emerge before the shareholder vote?
- How will the market react to the merger if approved?
- When will L1 Capital’s final audited financials be released?