Liontrust Asset Management has announced that it will waive an exit condition in its offer to acquire GAM Holding, a Zurich-listed investment manager. The UK-based sustainability-focused investment manager made this decision after GAM entered agreements to sell its third-party fund management services businesses in Luxembourg and Switzerland. As a result of this waiver, Liontrust has also extended the main offer period by three days, allowing GAM shareholders more time to consider the implications of the offer.
Waiver of Exit Condition
Liontrust has agreed to waive the FMS exit condition in its offer to buy GAM Holding. This decision comes as a result of GAM’s recent agreements to sell its third-party fund management services businesses. By waiving this condition, Liontrust is demonstrating its commitment to the acquisition and providing more flexibility to both parties involved.
Extended Offer Period
In addition to waiving the exit condition, Liontrust has extended the main offer period by three days. Originally set to end on a certain date, the offer period will now conclude on Friday. This extension allows GAM shareholders ample time to carefully review Liontrust’s offer, including the implications of a partial and conditional offer for 17.5% of GAM made by investor NewGAMe SA.
The Public Exchange Offer
Liontrust initially announced its public exchange offer in May, proposing to offer 0.0589 Liontrust shares for each GAM share. Since then, investor NewGAMe SA and Bruellan have expressed dissatisfaction with the proposed deal, seeing it as undervaluing GAM. In response, they have expressed their intentions to purchase 28 million GAM shares at a price of CHF0.55 per share, representing a premium of over 30% compared to the closing price on July 17.
