Niel's NewGAMe extends liquidity lifeline to GAM (updated)

Gam Holding AG

29/08/2023 07:23

(Adds detail and background, tweaks headline)
       ZURICH, Aug 29 (Reuters) - GAM  GAMH.S  said on Tuesday
that French billionaire Xavier Niel's NewGAMe shareholder group
had agreed to extend a liquidity lifeline of 20 million Swiss
francs ($23 million) as asset manager Liontrust  LIO.L  declared
its bid for GAM unsuccessful.
    "This short-term financing will remain until it is replaced
by the proceeds of a convertible bond to be issued by GAM in an
amount of about CHF 25 million," the Swiss fund manager said in
a statement.
    GAM said shareholders will get to vote on this at the next
extraordinary general meeting (EGM), to take place on or around
September 27.
    Last week a takeover offer from Liontrust  LIO.L  won the
backing of just 33.64% of GAM's shareholders. On Tuesday the
British firm formally declared its bid unsuccessful.
    Liontrust offered 107 million Swiss francs in its own shares
at the time, a deal now worth considerably less owing to a
decline in Liontrust's share price.
    The investor group with ties to Neil had vehemently opposed
the all-share offer, saying in July that it "grossly undervalues
GAM" and instead wanted to keep GAM listed, restructure it and
focus more on business with super-rich private clients.
    The investor group will propose new GAM board members at the
upcoming EGM, where the fund manager's current board is expected
to stand down. 
    ($1 = 0.8833 Swiss francs)

 (Reporting by Noele Illien, editing by Friederike Heine and
Jason Neely)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))