GAM agrees CHF 100m loan with core shareholder
investmentweek.co.ukElmar Zumbuehl (pictured), GAM CEO
Rock Investments SA is a French-incorporated entity that controls NewGAMe, a shareholder in GAM which actively opposed the failed takeover bid from Liontrust for the Swiss firm.
The previous takeover deal included an £8.9m loan from Liontrust, which GAM was forced to repay when its shareholders voted against the acquisition in August.
Failed GAM bid 'will lead to restructuring' as Liontrust outflows mount
The new agreement between GAM and Rock Investments SA has been agreed until 30 June 2025, with the option for it to be extended by an additional 12 months.
Additionally, Rock Investments SA, along with other NewGAMe investors will now control a 30% stake in GAM, following approval of its tender offer.
In the update, GAM said Rock Investments SA «has a reputation as a committed, long-term and knowledgeable investor and a proven track record of turning around businesses», adding the new loan «secures financing and has assured long-term financial stability for the firm».
Anthony Maarek, managing director of NJJ Holding, of which Rock Investments SA is a subsidiary, said: «GAM is an important long-term strategic investment for NJJ, and we are committed with management to restoring the company to a best-in-class global asset management firm. We view it as the first step in developing an investment pillar in financial services as part of NJJ's long term strategy.»
According to the update, GAM's total assets under management has declined CHF 3.1bn between the end of June and 30 September 2023.
At the beginning of the period, the firm's AUM sat at CHF 68bn, falling to CHF 64.9bn over the three months.
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