Niel's NewGAMe extends liquidity lifeline to GAM

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GAM said on Tuesday that French billionaire Xavier Niel's NewGAMe shareholder group had agreed to extend a liquidity lifeline of 20 million Swiss francs ($23 million) as asset manager Liontrust declared its bid for GAM unsuccessful.

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29 Aug 2023

«This short-term 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 25 million,» the Swiss fund manager said in a statement.

GAM said shareholders will get to vote on this at the next extraordinary general meeting (EGM), to take place on or around September 27.

Last week a takeover offer from Liontrust won the backing of just 33.64% of GAM's shareholders. On Tuesday the British firm formally declared its bid unsuccessful.

Liontrust offered 107 million Swiss francs in its own shares at the time, a deal now worth considerably less owing to a decline in Liontrust's share price.

The investor group with ties to Neil had vehemently opposed the all-share offer, saying in July that it «grossly undervalues GAM» and instead wanted to keep GAM listed,