Newgame announces provisional results for the acquisition of a planned 17.5 percent of Gam shares exceeded the target. Regulatory hurdles are likely to cause delays.
Newgame's takeover offer for 17.5 percent of GAM has been significantly exceeded. According to provisional interim results published on Monday. The shareholder group was offered around 40 million shares during the main offer period, but the offer only covers a maximum of 28 million GAM share certificates.
The Newgame investor group, which includes Geneva-based Bruellan and French billionaire Xavier Niel's private equity firm Rock Investment, currently holds 9.6 percent of GAM. After the settlement of the offer, the stake is expected to amount to at least 27 percent of GAM's share capital.
Control Already Taken
The investor group prevailed in blocking the planned takeover of GAM by Liontrust after a months-long tug-of-war in August. At the Extraordinary General Meeting at the end of September, the candidates proposed by the investors were then elected to the Board of Directors.
The additional offer period starts October 10 and ends October 23, with the closing of the offer expected to take place November 6. However, Newgame expects that the completion date will have to be postponed by approximately four months due to regulatory approval procedures, meaning a date in early March is more likely.
Newgame launched the counter-offer in July for the proposed Liontrust deal, offering 0.55 centimes per share. The offered shares would be taken over pro rata, a spokeswoman told finews.com.
