Tyrian Diagnostics Ltd (ASX:TDX) will facilitate a management buyout of Contango Asset Management by acquiring Contango for $13 million and issuing shares in Tyrian to Pacific Point Partners.
Contango has $600 million of funds under management.
Pacific Point Partners, an investment vehicle jointly controlled by James Packer and Robert Rankin, will acquire 19.9% of Tyrian as part of the transaction.
The management team at Contango, a boutique wholesale and LIC fund manager, is led by chief investment officer George Boubouras.
Boubouras joined Contango in late 2014, having previously worked at Equity Trustees and UBS Wealth Management.
Tyrian will undergo a capital consolidation on the basis of 1 share for every 300 existing shares and raise additional capital of $16.9 million.
Proceeds from the capital raise will be used to fund the $13 million purchase price for Contango and will provide additional cash reserves for working capital and to fund future growth.
Tyrian will change its name to Contango Asset Management Ltd. TDX will need to comply with Chapters 1 & 2 of the ASX Listing Rules for the deal.
Robert Rankin and James Packer, son of the late media mogul Kerry Packer, controls the Crown Resorts. Robert Rankin is the current chairman of Crown.
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