The Janus Henderson Group CDI (ASX: JHG) share price has jumped 6.40% today, with the company’s shares trading at $37.38 at the time of writing. This came after the Janus Henderson share price rallied on the New York Stock Exchange overnight, up by 7.55% before close and an additional 5.16% in after hours trading to US$28.32.
Why is the Janus Henderson share price moving higher?
I believe Janus Henderson shares are likely moving higher on rumours of a potential merger with fund manager Invesco Ltd. (NYSE: IVZ). The rumours were sparked after a recent investment by hedge fund Trian Fund Management. The fund took a 9.9% stake in both Janus Henderson and Invesco .
Trian Fund Management built up an investment in Legg Mason in 2019 before its merger with Franklin Resources, Inc. (NYSE: BEN) in February this year. The hedge fund is reportedly actively pushing for consolidation in the asset management industry and describes itself as a “highly engaged shareholder”.
Janus Henderson had US$336.7 billion in funds under management at 30 June 2020 whilst Invesco had $1.1 trillion funds under management at the same point in time.
Investors can only speculate on the nature of the offer, however, according to Credit Suisse it is likely that an offer would consist mainly of scrip with some cash, which it expects Invesco will borrow.
About Janus Henderson
Janus Henderson is a fund manager that offer services to institutional and individual investors. It is listed on the ASX and the New York Stock Exchange.
In the second quarter of 2020, Janus Henderson had revenue of US$518 million, down 7% compared to the first quarter of 2020. The company had adjusted diluted earnings per share of 67 cents in Q2 2020, this was a 12% increase compared to Q1 2020.
In March, Janus Henderson announced that it would buy back up to US$200 million worth of shares on both the New York Stock Exchange and the ASX. The buyback program is planned to remain in place until 2021.
The Janus Henderson share price is up 80.75% since its 52-week low of $20.68 and has risen 6.77% since the beginning of the year. The Janus Henderson share price is up 24.23% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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