Contango MicroCap Limited (CTN), the owner of Australian equity boutique Contango Asset Management, has announced a management buyout of the Melbourne based investment company.
CTN agreed to sell 100% of the company’s capital to members of CTN’s investment management team.
The cash consideration for the purchase of Contango Asset Management reaches $13m (€11.8m), CTN specified.
Meanwhile, Tyrian Diagnostics Limited (TDX) will acquire entirely Contango Asset Management with the management of Contango Asset Management becoming substantial equity owners in the company. TDX will rename as Contango Asset Management Limited.
Pacific Point Partners has agreed to subscribe for 19.9% of the ordinary shares in TDX as part of the transaction.
George Boubouras, chief investment officer of Contango Asset Management, said the transaction was the first step in an exciting future for the business.
“We have growth strategies in place to expand in the funds management business. These strategies are aligned with the interests of our clients, investors in our managed funds, staff and other key stakeholders.
“By restructuring the business in this more tightly aligned way we have created a highly scalable platform for significant future growth,” Boubouras added.
Established in 1998, Contango Asset Management, which has plans to be listed on the Australian securities exchange, has assets under management of $600m (€544.3m).
It manages large cap, mid cap, small cap, micro cap and income focused mandates for institutional clients.