Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineLiontrust shares remain in the doldrums as GAM takeover sees new twist
Fund manager Liontrust Asset Management (LIO) has seen its shares halve in the last six months, which is providing a headwind for its proposed takeover of struggling Swiss asset manager GAM (GAM:SWX).
Liontrust’s offer is based on issuing 9.4 million shares to GAM’s shareholders which on the day of the original takeover offer (4 May) valued GAM at CHF 107 million (£96 million), equivalent to CHF 0.67 per share. Liontrust’s shares have subsequently dropped, lowering the value of the proposed offer to CHF 0.45 per share.
Investors seem unconvinced the proposed deal is a great one which partly explains weakness in the shares. Meanwhile NewGAMe, controlled by French billionaire Xavier Niel, is urging shareholders to hold off voting the deal through.
NewGAMe and Geneva wealth manager Bruellan own 9.6% of GAM and have offered CHG 0.55 per share in cash to buy up to a further 17.5% of GAM, representing a chunky premium to Liontrust’s proposed offer.
Liontrust remains resolute, insisting its offer is full and final, arguing it is the best way to give GAM’s shareholders a positive outcome.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
