August 13, 2019 / 12:05 AM / 4 months ago

UPDATE 1-Billionaire Douglass-led Magellan Financial to raise $186 mln for new trust launch

(Adds details on results, placement, Douglass’s subscription in offering)

Aug 13 (Reuters) - Billionaire Hamish Douglass-led Magellan Financial Group said on Tuesday it is seeking to raise A$275 million ($185.6 million) through an issue of shares to cover costs related to the launch of a new ASX-listed investment trust.

The fund manager plans to float Magellan High Conviction Trust and is seeking to raise at least A$250 million, a company spokeswoman said.

Douglass will subscribe for A$20 million worth of units in the new investment trust under the wholesale offer, Magellan said.

He also plans on taking up his priority offer, which is eligible to shareholders and investors of Magellan and certain related entities.

The costs related to the offering will be funded through the issue of 4.98 million new shares of the fund manager at A$55.20 per share, representing a discount of nearly 8% to the company’s last close.

In a separate release, Magellan said its annual adjusted net profit rose 35% to A$364.2 million, with investors pouring money into the asset manager.

As at June 30, 2018 funds under management stood at A$75.82 billion, compared with A$59.03 billion a year earlier.

$1 = 1.4815 Australian dollars Reporting by Aditya Soni in Bengaluru; Editing by Stephen Coates

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