Investor group urges GAM shareholders to 'hold off' tendering to Liontrust offer
'We object to GAM’s message to shareholders that it is on the verge of collapse.'
In its letter, the company — which alongside Bruellan holds a 9.6% stake in GAM — told shareholders Liontrust is likely going to have to extend the tender period and «bump» its offer.
GAM reiterates Liontrust bid is sole takeover offer
It reiterated the Liontrust offer of CHF 71m (£63.3m) undervalues the business, which it said will deliver around CHF 35-40m in EBIT in 2025, according to Liontrust's own estimates. As a result, NewGAMe added the offer is not «fair» and stands below the range of values identified by the GAM board in its fairness opinion of CHF 0.54 to CHF 1.16 per share, compared to Liontrust's CHF 0.45 per share.
The investor group said: «Any rational investor considering tendering but agreeing that the offer is not fair should therefore wait until the last minute to tender. Shareholders that have already tendered or are considering tendering at the current terms must be a small minority by now.»
According to NewGAMe, investors not tendering or waiting to do so have three options: wait for Liontrust to bump its offer, tender to NewGAMe's partial offer in September, or get on board with the investor group's turnaround plan for the Swiss company.
The company also criticised Liontrust's «troubling governance issues» — more specifically the FMS transaction and credit facilities to GAM — which GAM's chair David Jacob is yet to address after being asked by NewGAMe twice, it explained.
GAM investor group makes counteroffer to Liontrust deal
The investor group added: «If satisfactory answers are not provided at the latest during the 25 August EGM, a special audit will need to be put in place. We wonder, for example, how it is
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