GAM in talks with Niel's NewGAMe after Liontrust offer falters (updated)

Gam Holding AG

24/08/2023 07:56

(Adds detail, quote, background)
       ZURICH, Aug 24 (Reuters) - GAM  GAMH.S  has entered into
discussions with a shareholder group, the fund manager said on
Thursday, after a takeover offer from Britain's Liontrust failed
to gain the required level of support. 
    British asset manager Liontrust  LIO.L  won the backing of
just 33.64% of GAM's  GAMH.S  shareholders, interim results
published on Thursday showed.
        A group of investors led by French billionaire Xavier
Niel's NewGAMe and asset manager Bruellan have opposed the
all-share offer, saying in July that it "grossly undervalues
GAM".
  
    "The GAM Board acknowledges that the majority of our
shareholders have not found the Liontrust Offer compelling. I am
pleased that we have entered constructive and productive
discussions with NewGAMe and that these discussions continue at
speed," Chairman David Jacob said.
    Liontrust had made its offer conditional on winning the
backing of two-thirds of GAM's shareholders in a prospectus it
published in June.
    Liontrust, which has until August 29 to decide whether it
will waive the condition and complete the transaction anyway,
said it currently expects to declare its offer to takeover GAM
unsuccessful on that date.
    After a year-long battle against cash outflows, GAM agreed
to the takeover in May.
    Liontrust offered 107 million Swiss francs ($122 million) in
its own shares at the time, a deal now worth considerably less
owing to a decline in Liontrust's share price.
    The opposing shareholder group, which now controls 9.6% of
GAM's shares, wants to keep GAM listed, restructure it and focus
more on business with super-rich private clients.
    Discussions with the group are now focused on providing a
bridge loan, GAM said, adding it expected the group to provide
proposals for a board shake-up and an extraordinary general
meeting.
    ($1 = 0.8768 Swiss francs)

 (Reporting by Brenna Hughes Neghaiwi and Noele Illien; editing
by Friederike Heine and Jason Neely)
 ((brenna.neghaiwi@thomsonreuters.com; +41 58 306 77 35;))