A majority of Liontrust shareholders approved the proposal for its acquisition of Swiss asset manager GAM. The vote also authorizes the board to allot new Liontrust shares to implement the offer.
More than 80 percent of shareholders in Liontrust assented to a proposal to acquire all publicly held shares in troubled Swiss asset manager GAM through a public exchange offer. At a general shareholder meeting today, they also voted in favor of allowing the board to allot new Liontrust shares, according to a statement from GAM.
Today's result is another forward step in what has been a contentious process, with a separate investor group against the sale. NewGAMe and Bruellan which make up the investor group controlling 8.4 percent of GAM are challenging the decision of the Swiss Takeover Board (TOB) decision for Liontrust's offer to acquire it in an all-share transaction. They also contend the price is too low, and they favor turning GAM around.
Clearing a Major Hurdle
Another hurdle the group placed in the way of a deal was the provision that Liontrust could withdraw its offer should GAM fail to exit its fund management services business.
That was overcome last week when GAM reached a definitive agreement to sell its loss-making fund management services for third-party funds (FMS) in Luxembourg and Switzerland to Carne Group, as finews.com reported.
GAM chairman David Jacob said he was pleased Liontrust shareholders strongly supported the Offer. «The GAM Board unanimously recommends the offer which was made after extensive due diligence by a highly regarded peer with a heritage in fund management. The enlarged business will have a strong balance sheet, a broader array of excellent investment products, a global distribution footprint, and the capability to deliver synergies and growth, in which GAM shareholders can participate in the future,» he said.
Strong Support of Managers
He went on to say the offer is strongly supported by the senior portfolio managers of GAM, who believe that it is in the best interests of its clients.
The Offer period started on June 28 and is expected to conclude on July 25, with the current GAM Board of Directors and Group Management Board agreeing to tender their shares. Final results of the main offer period are expected to be published on July 31 and completion of the transaction is currently expected to take place during the fourth quarter, contingent on satisfying or waiving the Offer conditions.
Shareholders tendering their shares into the offer will continue to be able to sell their shares on a second trading line for tendered shares. Whether or not shareholders have done so or intend to, their right to participate in and cast their vote, at GAM’s Extraordinary General Meeting to be held on 25 August remains unaffected.
