Platinum Investment Management (ASX:PTM) said it is in discussions with L1 Capital shareholders about a potential merger, which would create an investment business with funds under management of roughly AU$18 billion, according to a Thursday filing with the Australian bourse.
The potential merger involves the acquisition of L1 Capital in exchange for new shares, subject to shareholder approval and regulatory approvals, the filing said.
Discussions are still preliminary, and there is no guarantee of a transaction, according to the filing.
Platinum Investment Management's shares rose nearly 11% in morning trade Thursday.