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Highlights

  • Proposed merger would create an AU$18 billion funds management firm.

  • L1 Capital shareholders to own 75% of merged entity; Platinum shareholders 25%.

  • Deal remains non-binding and subject to due diligence and board approvals.

Investment firms Platinum Asset Management (ASX:PTM) and L1 Capital have confirmed they are in advanced discussions regarding a potential merger that would create a heavyweight $18 billion funds management business.

In a joint statement released Thursday, L1 Capital outlined the non-binding and indicative terms of the proposed merger, under which Platinum would acquire L1 Capital through the issue of new ordinary shares. If completed, the deal would significantly reshape Australia’s asset management landscape.

According to the proposal, L1 Capital shareholders would emerge with a controlling 75% stake in the combined entity, while current Platinum shareholders would hold the remaining 25%. 

Co-founders of L1 Capital, Mark Landau and Raphael Lamm, expressed strong support for the potential tie-up.

“We believe a Potential Merger with Platinum represents a compelling value proposition for Platinum shareholders and has the potential to deliver material earnings and value accretion,” they said.

Despite the optimism, both companies emphasised that the deal is still at a preliminary stage. Completion of the transaction remains subject to a range of conditions, including the successful completion of mutual due diligence, formal board approvals, and entry into legally binding agreements.

The companies cautioned there is “no guarantee that a transaction will result” from the ongoing discussions, but added that both sides are actively working toward reaching an agreement.