GAM urges shareholders to accept Liontrust bid
Following the approval from Liontrust shareholders at the firm’s annual general meeting last week (7 July), GAM has continued to urge its investors into accepting the deal.
In an investor presentation yesterday (11 July) seen by Investment Week, GAM emphasised its reliance on a conditional loan from Liontrust to continue running the business, as well as the restructuring necessary to return it to profitability.
Following the approval from Liontrust shareholders at the firm's annual general meeting last week (7 July), GAM has continued to urge its investors into accepting the deal, despite pushback from shareholders.
Liontrust publishes delayed GAM prospectus offer
Investor group NewGAMe and Bruellan, which holds an 8.4% stake in GAM, has consistently campaigned against the deal, arguing it undervalued GAM.
This led them to petitioning Swiss regulator FINMA and calling an extraordinary general meeting on 25 August to replace the board.
Pushing back on the shareholder revolt, GAM wrote yesterday that the proposal from NewGAMe provided «no certainty» and had «no due diligence».
The proposed provision of liquidity also «materially dilutes existing shareholders and gives NewGAMe full control of board,» it argued.
In contrast, GAM said that the acquisition with Liontrust would form a «strong complementary businesses», with the bid being «the only credible offer received during the 12 month strategic review» of the firm.
«Shareholders will have certainty and the opportunity to participate in the potential growth of the enlarged group if they tender their shares,» the firm said. «They are not being ‘cashed out' nor are they being diluted.»
The offer from Liontrust in May came with a CHF 20m (£17.6m) loan facility, with GAM
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