Liontrust’s attempt to acquire GAM has fallen short, as only 33.45% of the total shares were tendered, far below the required minimum acceptance level of 66.6%.
Following the unsuccessful bid, GAM is currently in talks with shareholder group NewGAMe to explore short-term bridge financing, initially proposed by Rock Investment SAS, a member of the shareholder group, on August 18.
Consequently, Liontrust is expected to announce the failure of the offer on August 29.
Liontrust’s CEO, John Ions, was recently accused by NewGAMe of misleading investors regarding a key shareholder’s perspective, according to reports.
GAM has acknowledged the necessity of securing suitable financing to ensure its ongoing operations. David Jacob, chair of GAM, acknowledged that the firm’s board did not find Liontrust’s offer compelling and added that constructive discussions with NewGAMe are underway.
Despite the bid’s failure, Liontrust will bear up to £11 million in related costs, with £2 million incurred in the financial year ending on March 31, 2023. These expenses include corporate finance, extended legal fees, accountancy services and third-party due diligence.
Expressing disappointment over not securing the majority of shareholders’ support, Ions, Liontrust’s CEO, appreciated the efforts extended by supporters at GAM.
Liontrust’s shares responded positively to the news, opening 13.9% higher this morning, according to MarketWatch data,
© 2023 funds europe
