Global Asset Management (GAM) has entered into talks with investor group Newgame after the mooted Liontrust bid is now expected not to materialise.
The “constructive and productive” discussions between GAM’s board of directors and Newgame are focused on short term financing, offered by Newgame subsidiary Rock Investment SAS on 18 August. The Liontrust offer is expected to be declared unsuccessful on 29 August 2023.
David Jacob, chairman of the GAM Holding AG, said: “The GAM board acknowledges that the majority of our shareholders have not found the Liontrust offer compelling. I am pleased that we have entered constructive and productive discussions with Newgame and that these discussions continue at speed.”
GAM said the discussions with Newgame were set to conclude “shortly” and the firm declared it would update as soon as discussions had progressed.
“In addition, Newgame has recognised the need to ensure that GAM has appropriate and adequate financing to continue as a going concern,” GAM said.
In May it was announced that Liontrust had conditionally agreed to acquire the troubled investment management group in an all share approach, with ordinary shares of a penny each in the capital of Liontrust issued to GAM shareholders for a valuation of GAM’s share capital at CHF107 million (US$120.6 million).
The merged company was set to be a global asset manager with £53 billion (US$66.6 billion) in AuM, based on Liontrust’s AuM of £31.7 million as at 17 April 2023 and GAM’s Investment Management division AuM of CHF 23.3 million as at 31 March 2023, with the proposed acquisition expected to complete in the 4th quarter of 2023.
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