GAM investor group makes counteroffer to Liontrust deal
The offer price represents a 31.9% to the closing price of the GAM shares yesterday (17 July), and a 29.1% premium on the offer made by Liontrust.
The group, which has pushed for GAM shareholders to reject the offer from Liontrust, offered to purchase up to 28 million GAM shares, approximately 17.5% of the issued capital of the firm, at CHF 0.55 (49p) per share.
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The offer price represents a 31.9% to the closing price of the GAM shares yesterday (17 July), and a 29.1% premium on the offer made by Liontrust.
Furthermore, the investor group noted, the offer would be paid in cash over Liontrust's offer of its own shares.
The offer prospectus will be published on or around 17 August, the group said.
In a statement, the group argued that Liontrust's offer «grossly undervalues GAM», while also being subject to «execution contingencies, which make it highly unattractive».
It said that through restructuring, GAM could return to profitability, and therefore encouraged shareholders to not vote to agree to Liontrust's offer.
However, the group said that due to the risk of the restructuring, it was offering GAM shareholders who wished to exit the company «an opportunity to realise some of their investment at attractive conditions».
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Albert Saporta, director of NewGAMe SA, said: «The announced offer gives a partial exit to shareholders who are concerned by the absence of an alternative to Liontrust's inadequate offer.
»As GAM's second-largest shareholder, we are convinced there is a significant upside associated with the successful restructuring of the company and are confident that GAM
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