Investor group NewGAMe and Bruellan has tabled a partial cash offer for 28 million GAM shares at CHF 0.55 (49p) each.
This represents a 29.1% premium on the value of the Liontrust offer which they are seeking to scupper. NewGAMe and Bruellan’s calculation is based on Liontrust shares being priced at £6.43 on 17 July 2023 and a GBP/CHF exchange rate of 1.1251.
The investors already own 9.6% of GAM and if the offer becomes fully subscribed they would own another 17.5%, bringing the total to 27.1%.
See also: Liontrust: John Ions urges GAM shareholders to back takeover
Owning this much of GAM would effectively block Liontrust’s plan to complete a full takeover of the Swiss asset manager and integrate it into its business.
The Swiss based investors reiterated that they believe Liontrust’s offer “grossly undervalues” GAM and claimed it is subject to “execution contingencies” which make it highly unattractive.
NewGAMe and Bruellan have been publicly opposed to the takeover proposal since shortly after it was announced in April. Last week, the investors laid out an investment thesis outlining an alternative path forward for the asset manager as an independent entity.
See also: GAM investor group says firm worth double Liontrust’s offer
GAM has been stuck in a run of poor financial performance and is set to make a CHF 23m (£20m) loss this year having lost CHF 15m (£12m) in the last financial year.
Earlier this week it was reported that GAM’s third largest shareholder Global Emerging Markets Group is also against the Liontrust bid.
In contrast, GAM’s largest single investor with 17.3% of the shares, Silchester International Investors, has said it is backing the Liontrust deal.
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Albert Saporta, director of NewGAMe, commented: “The announced offer gives a partial exit to shareholders who are concerned by the absence of an alternative to Liontrust’s inadequate offer.”
“As GAM’s second-largest shareholder, we are convinced there is a significant upside associated with the successful restructuring of the company and are confident that GAM shareholders are better off remaining invested in the company.”
Liontrust declined to offer comment.
