Liontrust gets green light from FCA for GAM takeover as battle with shareholders heats up
Liontrust has secured the approval of the City watchdog for its proposed takeover of the ailing Swiss fund manager GAM Holdings.
Liontrust described the approval as a “major step forward” in the team as it enables the fund manager to take control of GAM’s UK regulated entities.
The green light from the Financial Conduct Authority follows permission from FINMA, the Swiss regulator, and the central bank of Ireland.
Applications are in progress in Luxembourg, Italy and Hong Kong with decisions expected in the next three months.
The update comes amid a fractious takeover battle between Liontrust and a group of rival shareholders called NewGAMe, backed by French tycoon Xavier Niel.
Liontrust struck a £96m deal to buy the GAM earlier this year but the consortium NewGAMe, which controls around 9.5 per cent of GAM’s share capital, has pushed back on the proposal aggressively.
The firm has tabled a bid to snap up some 28m GAM shares, representing around 17.5 per cent of the firm’s issued share capital, at 49p per share. It slammed Liontrust for “grossly” undervaluing GAM and said its offer was “subject to execution contingencies, which make it highly unattractive”.
However, the GAM board has remained committed to Liontrust’s offer and today Liontrust also noted that proxy agencies ISS and Glass Lewis have both recommended the offer to GAM shareholders.
GAM will hold an extraordinary general meeting on 18 August where shareholders will vote on proposals.