An investor group yesterday offered to buy 28 million GAM shares at a premium. The board of the beleaguered Swiss asset manager once again recommends accepting an offer from Liontrust.
On Tuesday, a Group controlling 9.6 percent of GAM's share capital floated a partial cash offer for 28 million shares of GAM at 55 centimes per share. That's a 29.1 percent premium to the offer made by Liontrust, representing a volume of approximately 15.4 million Swiss francs.
The Group opposes the takeover by Liontrust and wants to effect a turnaround at GAM. Last night GAM said it took note of the proposal from Newgame and Bruellan, and once again «strongly recommends» shareholders accept Liontrust's offer.
No Engagement with GAM
Newgame declared to the Swiss Takeover Board its offer should not be considered a competing offer to that from Lointrust.
The board of GAM continues to support «Liontrust’s offer to purchase the entire share capital of GAM. The Newgame offer is not an offer for all shares in GAM. It is not based on any engagement with GAM or its Board. It will be subject to regulatory approvals and other conditions,» according to the regulatory filing last night.
The tender period for the British company's offer values GAM at 107 million francs, and concludes July 25. Silchester, GAM's largest shareholder said that it will tender its shares for the exchange.
The share closed Tuesday at 0.507 francs, up about 22 percent. Liontrust is offering 0.0589 of its shares for each GAM share. At the current Liontrust share price, this corresponds to around 44 centimes per share certificate.
