MinterEllison has advised Generation Development Group Limited, a diversified financial services group, on its fully underwritten $155.3 million capital raising.

The funds raised will be primarily used for the acquisition by Generation Development Group of all of the remaining equity securities in Lonsec Holdings Pty Ltd that it does not already own, approximately 62%, for total upfront consideration of $197.4 million plus an earn-out of up to $90 million (Acquisition). Generation Development Group initially invested in Lonsec in 2020.

The capital raising comprises a fully underwritten 1 for 3.98 pro-rata accelerated non-renounceable entitlement offer of new fully paid shares in Generation Development Group to certain eligible shareholders to raise approximately $93.4 million; and a supersized placement of New Shares to certain institutional and sophisticated investors to raise approximately $62 million.

The MinterEllison team was led by Partners Bart Oude-Vrielink and Sudharshan Senathirajah, who were supported by Alexander Persano, Josh Carfi, Christian Melone and Phillip Martin.

Bart Oude-Vrielink, Partner, MinterEllison, said: "Advising Generation Development Group on their $155.3 million capital raising has been a highlight for our team. This represents a significant milestone for Generation Development Group, setting the stage for their continued expansion in the financial services sector through the Lonsec acquisition. Our team's expertise was pivotal in the seamless execution of this transaction."

The offer price for the placement and entitlement offer will be $1.95 per new share, representing a discount of 13.34% to the last closing price on Wednesday, 29 May 2024 of $2.25 per share, after which the company went into a 2+2 trading halt due to a media leak.