Lonsec divests over 50% issued capital with Baker McKenzie’s help

Lonsec Holdings Pty Ltd (Lonsec) has sold 61.9% of its issued capital to Generation Development Group Limited (GDG) with Baker McKenzie’s assistance.

By purchasing the fully diluted share capital, GDG will take full ownership of Lonsec. The deal assigns Lonsec a maximum enterprise value of $430m on a 100% basis.

GDG first invested in Lonsec in 2020, and the acquisition “provides an opportunity for GDG to take full control of a familiar asset with further expected significant growth upside”, Baker McKenzie said in a media release. The firm said that expectation for Lonsec’s future growth is backed up by regulatory tailwinds.

Following the acquisition, Lonsec will still operate as a standalone entity. The business plan and financial and operating strategies effected before the binding agreement will continue to be implemented.

The deal is set to be completed in August pending the fulfilment of customary closing conditions and approval from GDG shareholders.

Partner Richard Lustig led the Baker McKenzie team that worked on the transaction. He was supported by Jed Lehmann, Addison Naylor, Jamie Sung and Alan Darwin.