Investor group NewGAMe and Bruellan has called for GAM’s extraordinary general meeting (EGM) to be moved until after the outcome of Liontrust’s takeover offer is known.
Shareholders were supposed to vote on NewGAMe’s alternative vision for the future of GAM during the 18 August EGM. However, NewGAMe has said it will withdraw from the meeting should an extension not be publicly announced by 10 August.
The investor group, which holds approximately 9.6% of GAM shares, would then request a new EGM once the result of Liontrust’s bid is known.
See also: Liontrust extends GAM offer period for third time as NewGAMe reveals 100-day plan
The group’s proposals include replacing the existing board with their own directors and launching a special audit. It has also tabled its own bid for another 17.5% of shares.
Liontrust’s main offer period has been extended three times after initially ending on 25 July, with the latest extension bringing the deadline to 23 August.
Antoine Spillmann, CEO and partner at Bruellan and the investor group’s proposed candidate for chair of GAM’s board, said: “It is clear that Liontrust does not have the support it needs to proceed with its acquisition of GAM and the latest extension of the offer period to until 23 August is intended to force shareholders to vote on NewGAMe’s proposals before the result of Liontrust’s offer is known.
“We want GAM shareholders to be able to make an informed choice about the future of the company. Rather than acting in the best interests of the company, GAM’s board of directors are playing with dates and deadlines to avoid being held to account by shareholders in case of a failure of the Liontrust offer.”
The EGM extension request comes as the Financial Conduct Authority (FCA) has granted change of control approval for Liontrust’s proposed takeover of GAM.
The approval relates to GAM Sterling Management Limited; GAM International Management Limited; GAM Unit Trust Management Company Limited; GAM London Limited; and GAM Systematic LLP.
Liontrust said that applications to financial regulators in Luxembourg, Italy and Hong Kong are in progress and decisions are expected to be confirmed within the next three months.
