Niel’s NewGAMe extends liquidity lifeline to GAM

Avatar photo

by Reuters

See all articles
Niel’s NewGAMe extends liquidity lifeline to GAM

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.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer