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Bridget Carter

Generation Development Group raising $35m for $20m Lonsec stake

Bridget Carter
Generation Development Group is run by former Olympian Grant Hackett. Picture: Wayne Taylor
Generation Development Group is run by former Olympian Grant Hackett. Picture: Wayne Taylor

Generation Development Group has launched a $35m equity raising through Morgans and Moelis to buy a stake in Lonsec for $20.1m.

The shares are being sold at 70c each, a 16.7 per cent discount to the last closing price of 84c on Wednesday.

The raise is by way of a fully underwritten placement to secure $21.9m and a 1 for 6.7 non-renounceable entitlement offer to secure $13.1m, representing 14.9 per cent of current issued capital.

The proceeds are being used to buy a 37 per cent stake in financial research business Lonsec, fund the development of a new annuity product, provide general corporate working capital and pay transaction costs.

Formerly known as Austock Group, Generation Development Group is an ASX listed company that operates as a registered Pooled Development Fund (PDF) specialising in providing development capital to financial sector businesses.

The business is chaired by former Westpac executive Rob Coombe and run by former Olympic gold medallist swimmer Grant Hackett.

Lonsec is a qualitative research firm that provides ratings to fund managers, superannuation funds, advisory groups and platforms.

Bridget Carter
Bridget CarterDataRoom Editor

Bridget Carter has worked as a writer and editor for The Australian’s DataRoom column since it was launched in 2013, focusing on capital markets, mergers and acquisitions, private equity and investment banking. She has been a journalist for more than 18 years, covering a broad range of events and topics, including high profile court cases and crimes, natural disasters, social issues and company news.

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Original URL: https://www.theaustralian.com.au/business/dataroom/generation-development-group-raising-35m-for-20m-lonsec-stake/news-story/87bde66f3cfb23d7f2a7d8239b0f8ec1