Barrenjoey's Untouchables

My column in The Australian Financial Review on Wednesday directed stinging criticism at both Magellan Financial Group and Barrenjoey Capital Partners for their refusal to publish Barrenjoey's December 2025 accounts ahead of Magellan shareholders voting this week on the share placement to fund Barrenjoey's full acquisition. 

In that column I also revealed Barrenjoey is paying a dividend to its current shareholders before the completion of its takeover by Magellan but that Magellan and Barrenjoey were refusing to disclose the quantum of that dividend.

Barrenjoey’s Game of Mates

Imagine buying an investment bank and withholding its debt position from your shareholders. That is actually happening.

Australian Financial ReviewJoe Aston

At 6:51pm on Easter Thursday, Magellan lodged an investor update with the Australian Securities Exchange, disclosing Barrenjoey's balance sheet as at December 31 and the salient information that Barrenjoey would pay a pre-completion dividend "not to exceed" $45 million (being 115 per cent of its retained profit for the December half). That's roundabout $5 million apiece to tide over messrs Matthew Grounds and Guy Fowler and, naturally, this was never factored into the net cash position of the combined entity as published in the investor presentation to market the deal.

Now that Magellan's directors have had this information wrung out of them, I'd just love to know how they self-justify their original secrecy. How hard would it have been to extend some elementary respect to their shareholders from the outset?