4th Aug 2023 09:12
(Alliance News) - Liontrust Asset Management PLC on Friday affirmed that takeover target GAM Holding AG needs "certainty and a clear strategy" as the London listing looks to turn doubters into believers ahead of a vote on the future of the Zurich-based asset manager.
Liontrust said GAM shareholders now have until August 23 to tender shares. There is a GAM extraordinary general meeting set for August 18, where shareholders will vote on proposals brought forward by an investor group, which include the removal of the firm's board.
The sternest opposition to the Liontrust buyout of GAM comes from French telecommunications billionaire Xavier Niel, through NewGAMe SA. NewGAMe is controlled by Rock Investment, which is itself owned by NJJ Holding, Niel's personal holding company.
NewGAMe, alongside Geneva-based wealth manager Bruellan, back in May said Liontrust's offer undervalues GAM.
Liontrust announced the all-share deal to acquire GAM in May, at the time valuing the company at CHF107 million, around GBP96.1 million. Liontrust said the offer was equivalent to CHF0.67 per share. GAM shareholders would have just shy of a 13% stake in the enlarged firm.
Liontrust Chief Executive John Ions back in July said the "the clock is now at one minute to midnight for the future of GAM".
"Liontrust's good and fair offer for GAM is the only one on the table and the only proposal that provides a viable solution for the business leading to a positive outcome for shareholders," Ions said at the time.
In July, NewGAMe and Bruellan, which own 9.6% of GAM, announced a public offer to acquire another 17.5% of the company at CHF0.55 per share in cash.
NewGAMe Director Albert Saporta also in July said GAM "has a great future as a standalone company".
Liontrust believes plans by NewGAM are "so long on rhetoric and so short on detail", however.
Liontrust shares were 0.3% higher at 629.00 pence each in London on Friday morning. GAM was up 4.0% at CHF0.52 in Zurich.
By Eric Cunha, Alliance News news editor
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