5 questions asked at 2026 Magellan hybrid EGM
April 14, 2026
Below is a summary of the 5 questions raised in person at the 50 minute Magellan Financial Group (MFG) 11am hybrid EGM on April 10 in Sydney at the MFG HQ (L36 of 25 Martin Place) to approve the Barrenjoey takeover. The single placement resolution was approved by 92.7% of voted stock and they added the headcount data showing strong support. See notice of meeting. Market cap was $1.73 billion on EGM day. The proxies were disclosed early in these formal addresses and The AFR published this preview of the meeting.
Special deal for Lowys as retail shareholders got shafted
Q1. Opening exchange at Friday's Magellan EGM in Sydney where asked if Lowys were promised the SPP would be capped at a miserable $20m after they were selectively placed almost 4 times this amount in the earlier $130m placement.
Answer: The chair Andrew Formica denied this so it seems the board was to blame for the shafting and had full discretion to respond positively to this letter setting out the arguments for a lifting of the cap, but chose not to. Listen to audio of exchange via Twitter.
Poor disclosure in the original documents
Q2. Asked Magellan chair how they were able to pull off the Barrenjoey acquisition with nothing more than a placement approval resolution plus withhold disclosure of the Barrenjoey balance sheet which eventually came out at 6.51pm on Easter Thursday and revealed $6b in liabilities and just $225m in net assets.
Answer: The chair Andrew Formica said leveraged balance sheets in Barrrenjoey's business were industry standard and just there to support trading settlements. Listen to audio of exchange via Twitter, plus these additional comments by the chair claiming Barrenjoey has strong growth prospects going forward.
Why reward the Lowys if they'd sold down to zero?
Q3. Magellan chair Andrew Formica admits that whilst the Lowy family had been on the register for a decade previously, they had sold down to zero at the time they were placed 5% of the stock, diluting all the other loyal shareholders who stuck by Magellan during its long decline. Why did they deserve such a special deal?
Answer: He claimed 50 of the 10 largest shareholders rejected the chance to participate in the placement, partly because it was launched the same weekend that hostilities with Iran broke out. Listen to audio of exchange via Twitter, plus this response from the chair.
A chance to respond to Joe Aston
Q4. Asked to respond to Joe Aston's various AFR articles (see here and here) slamming Magellan-Barrenjoey deal, Magellan chair Andrew Formica had nothing to offer beyond suggesting he likes to do his own research in addition to what “media” might say. A disappointing response vacating the debate space.
Answer: Listen to audio of exchange via Twitter.
Q5. Valuation of the funds management business
Answer: The chair Andrew Formica reckons the market was valuing its funds management business fairly and under-valuing its various associates, including Barrenjoey. Listen to audio of response via Twitter.
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