Investor group launches partial GAM counterbid

Gam Holding AG

18/07/2023 07:28

ZURICH, July 18 (Reuters) - A shareholder group
controlling roughly 9.6% of GAM Holding's  GAMH.S  shares on
Tuesday announced a partial cash offer to purchase a further
17.5% of the Swiss asset manager's capital in a counter-bid to
its takeover by Liontrust  LIO.L .
    The group of investors, led by French billionaire Xavier
Niel, said they would purchase up to 28 million GAM shares at a
price of 0.55 Swiss francs ($0.6404) per share.
    "The announced offer price further represents a premium of
29.1% to the value as of 17 July 2023 of the offer made by
Liontrust Asset Management," the group, comprised of
Geneva-based investor group NewGAMe and Swiss independent wealth
manager Bruellan, said in a statement.
    Liontrust conditionally agreed to acquire GAM Holding AG in
a deal that values the Swiss asset manager at 107 million
francs, the companies said in May. 
    But investors led by Niel have opposed the all-share offer,
saying they want to try to turn GAM around. 
    "The Group considers that Liontrust's offer not only grossly
undervalues GAM but is also subject to execution contingencies,
which make it highly unattractive," NewGAMe said on Tuesday.
    In June, GAM Holding's board repeated its appeal to
shareholders to accept a takeover approach from Britain's
Liontrust Asset Management. 
    NewGAMe said it would publish the offer prospectus for its
public cash offer on or around Aug. 17, whereas Liontrust's
takeover offer period has been to set run until July 25.

($1 = 0.8588 Swiss francs)

 (Reporting by Brenna Hughes Neghaiwi, Editing by Louise
Heavens)
 ((brenna.neghaiwi@thomsonreuters.com; +41 58 306 77 35;))