Industry News, Trustworthy Insights

Popular Companies:

Failed GAM Deal: Major firms to receive a share of £11m in fees from Liontrust

Three major firms are set to receive a share of the £11m in fees from Liontrust, a UK-listed investment company, following its unsuccessful bid to acquire Swiss rival GAM.

Liontrust announced on 24 August that it did not secure enough support from GAM shareholders for its £96m takeover proposal. Photo: Getty Images
Liontrust announced on 24 August that it did not secure enough support from GAM shareholders for its £96m takeover proposal. Photo: Getty Images

Only 33.45% of GAM shares were tendered in favor of the deal, falling short of the required 66.6% threshold. Despite the failed bid, Liontrust expects to incur a one-off charge of no more than £11m.

The fees will cover various services, including corporate finance, legal expenses in multiple jurisdictions, accountancy services, and third-party due diligence.

Dentons, a law firm, acted as the legal adviser, while Alantra Corporate Finance served as the lead financial adviser. Deloitte, a Big Four consultancy, acted as the reporting accountant.

However, Alantra and Deloitte declined to comment on the matter, and Dentons has yet to respond to requests for comment.

Following the collapse of the takeover bid, GAM has entered into discussions with NewGAMe, an activist investor group that holds approximately 9.6% of its shares.

RELATED Kuwait Investment Authority: The $250Bn AUM Empire

NewGAMe consistently opposed Liontrust’s offer, arguing that it undervalued the Swiss firm.

The discussions between GAM and NewGAMe will focus on agreeing to short-term bridge financing.

Rock Investment, a part of NewGAMe, offered the financing on 18 August, seeking to match a loan of around 20m Swiss francs ($22.8m) that Liontrust had offered in the event of its bid falling through.

NewGAMe emphasized that the funding would be conducted on an arm’s length basis.

Despite the failed takeover, Liontrust and GAM continue to explore options to secure their respective futures. Liontrust encountered significant challenges in gaining support from GAM shareholders, while GAM looks to engage with NewGAMe to secure short-term funding.

The fees incurred in this failed deal serve as a reminder of the costs involved in pursuing mergers and acquisitions, even when they do not ultimately materialize.

To get in contact with feedback on this article please email us at publishing@krugmaninsights.com 

[/membership]

Industry news used by professionals

Try £4.99 per month

Already a member?
Weekly Digest

All the week’s industry events straight to your inbox.

Before your sign up, please read terms of use and privacy policy.

Trending

FREE Weekly Newsletter

Trusted industry insights used by Professionals

By signing up you agree to our terms of use and privacy policy.

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Password Reset

You will soon receive a Reset Password link

FREE Weekly Newsletter

Trusted industry insights used by Professionals

By signing up you agree to terms of use and privacy policy.

Send us your article

[formidable id=3]