GAM given 30 days to repay Liontrust loan
GAM will propose the issuance of a convertible bond to raise around CHF 25m.
The asset manager said in a regulatory filing today (29 August) that only just over 53 million shares were tendered into its offer as of 23 August, representing around 33.4% of GAM shares.
Liontrust bid fails as GAM enters discussions with shareholder group NewGAMe
This led to the company declaring its offer to be «unsuccessful», meaning there will not be an additional acceptance period and the offer will not be settled.
As part of the shareholder circular published by Liontrust on 13 June, the asset manager has the «right to demand immediate repayment» of the financial support provided to GAM, amounting to £8.9m plus interest.
GAM will have 30 days from today to pay the sum back to Liontrust, the asset manager said.
At the same time, GAM revealed today it has reached an agreement with NewGAMe and Rock Investment to extend immediate short-term financing of CHF 20m (£18m) to «cover GAM's liquidity needs».
Rock is part of the investor group comprising NewGAMe and Bruellan.
GAM said the 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 25m».
The issuance of the convertible bond will be proposed to shareholders at the company's extraordinary general meeting on 27 September alongside the issuance of new shares to «enable the contemplated convertible bond and further share replacements», it added.
Questions raised over 'management credibility' as Liontrust fails to buy GAM
At the EGM, Rock will also propose new directors for election to the GAM board, after the current board agreed to stand down at the meeting.
David Jacob, chairman of GAM, said: «I am pleased that we
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