MFG -8.41%: the fund manager is continuing to refocus its business, today announcing the sale of its 11.6% stake in Mexican fast-food chain Guzman Y Gomez. They’ll book a 36% profit in just under 18 months, selling the stake to Magellan backed Barrenjoey for $140m, with an additional $6m linked to the company’s performance. The proceeds will go towards ongoing capital management with Magellan shares currently 70% below their 12 month high. The move is a positive one in our view, a capital raise without the dilution of new shares and provides further flexibility for Magellan’s core business.
MM is bullish MFG
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