GAM investor group hits back at Liontrust CEO over 'value-destructive M&A' track record
The investor group criticised Liontrust for being 'one of the worst-performing stocks in the fund management sector over the past 12-24 months'.
The investor group holds 9.5% of the issued share capital of GAM and is the Swiss asset manager's second largest shareholder.
NewGAMe and Bruellan deemed the Liontrust deal «lop-sided», as GAM shareholders would own 14.5% of the combined company, despite contributing 40% of its assets under management, it explained.
It also argued that the terms of the deal undervalue the Swiss company, as its EBIT margins are expected to reach 30% by 2025.
Liontrust CEO: 'The clock is now at one minute to midnight for the future of GAM'
The investor group criticised Liontrust for its «track record of value-destructive M&A» and for being «one of the worst-performing stocks in the fund management sector over the past 12-24 months».
In its response today (17 July), the group also welcomed the decision by New York-based investment manager GEM to vote against the offer. The firm holds a 6.5% stake in GAM, making it its third largest shareholder.
The company's largest shareholder, Silchester International Investors — which holds 17.3% of GAM's share capital — has come out in support of the deal.
GAM forecasts £20.5m losses for H1 2023 as AUM drops 9.7%
Antoine Spillmann, CEO and executive partner at Bruellan and the investor group's proposed candidate for chair of GAM's board, said: «As GAM's second largest shareholder, we believe Liontrust's offer significantly undervalues GAM and are delighted that the company's third largest investor agrees with us.
»We have a clear plan to return GAM to profitability and growth over the next two years — this provides shareholders with a viable alternative
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