Liontrust extends the deadline for the GAM offering period for the third time
- Liontrust said the main offer period will now close at 4 p.m. on August 23
- On Thursday, GAM called on its shareholders to vote in favor of the proposed deal
- GAM investors Bruellan and investment vehicle NewGAMe oppose the offer
Liontrust has extended the deadline for the proposed acquisition of Gam for a third time, a day after the Swiss fund manager urged investors to support the offer.
The main offering period was due to end today and now closes at 4pm on August 23rd, almost a month after the original deadline of July 25th and following two previous renewals.
London-listed Liontrust has conditionally agreed to purchase GAM in a £96 million deal that would create a company with £53 billion in assets under management, and broaden its range of funds and asset classes.
Proposed deal: London-listed Liontrust has conditionally agreed to buy GAM for £96m
More than 80 percent of the company’s shareholders approved the future transaction at a general meeting four weeks ago.
On Thursday, GAM called on its shareholders to vote in favor of the acquisition as the company accelerated underlying half-year pre-tax losses to CHF 22.5 million.
Chairman David Jacobs said the results “demonstrate the challenges GAM faces, which is one of the reasons the board continues to recommend Liontrust’s offer.”
But the takeover is being held back by several GAM investors, including Geneva-based financial advisor Bruellan and investment vehicle NewGAMe, which is backed by French telecom mogul Xavier Niel.
They claim the deal is lopsided, “undervalues” GAM and would not bring stability given Liontrust’s share price performance over the past few years.
Liontrust Asset Management Shares have fallen by about two-thirds over that time as investors move money out of riskier funds.
They were down 1.3 percent, or 8p, to 619p early Friday afternoon.
NewGAMe and Bruellan, who together hold a 9.6 per cent stake in GAM, have made an alternative partial offer to buy 28 million GAM shares for £13.7 million.
They left one ‘100-day plan for the GAM cover’ yesterday, including a capital injection of CHF 25 million, the appointment of a new board and the alignment of the cost structure with the assets under management.
John Ions, the CEO of Liontrust, has responded with a letter to NJJ, NewGAMe’s ultimate controller through Rock Investments, describing the blueprint as anything but a detailed proposal‘.
He claimed that GAM needs a minimum investment of CHF 200 million to return to profitability and said that Liontrust could not have had a “direct conversation” with NewGAMe employees.
Ions continued that the extension of the offer period would allow GAM shareholders to “make a clear choice” over the two proposals.