GAM Holding is facing a public cash offer from an investor group that currently holds around 9.6% of the company. The group, consisting of NewGAMe and Bruellan, plans to buy 17.5% of GAM, as they believe the proposed share deal undervalues the Swiss asset manager. They aim to acquire 28 million GAM shares at a price of CHF0.55 per share, which represents a substantial premium of over 30% compared to Monday’s closing price of CHF0.42.
This move is in response to Liontrust Asset Management’s takeover bid, whereby they offer 0.0589 of their shares for one GAM share. The investor group’s offer is positioned as a viable alternative, with a 29% premium to the previous offer, taking into account Liontrust’s closing price on Monday and the exchange rate between pounds and Swiss francs.
Albert Saporta, director of NewGAMe and leader of the investor group, explains that their offer allows concerned shareholders to partially exit the company and avoid accepting what they perceive as an inadequate offer from Liontrust.
NewGAMe is a subsidiary of a holding company owned by French billionaire Xavier Niel, while Bruellan operates as an independent wealth manager.
As of 0841 GMT, GAM Holding shares had risen by 16% to CHF0.48, while Liontrust shares experienced a modest increase of 1.6% to 653 pence.