Shares of Magellan Financial Group Ltd surged 17.14% during intraday trading on Tuesday, following the announcement of a significant corporate transaction.

The sharp rise comes after the company revealed it has agreed to acquire all the issued shares of Barrenjoey Capital Partners that it does not currently own. The deal implies a valuation of approximately A$1.62 billion (US$1.14 billion) for the Australian investment bank, which is nearly six years old.

This strategic merger is viewed as a major move for Magellan Financial, which already owned a 36% stake in Barrenjoey. The transaction is expected to reshape the company's business profile and has been positively received by the market, driving the substantial price increase during the trading session.