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Liontrust Asset Management PLC on Tuesday reported an approval it received from the UK’s Financial Conduct Authority for its planned acquisition of Zurich-based asset management company GAM Holding AG. The London-based asset manager said it received change in control approval from the FCA. The planned acquisition with a value of fr.107 million, around £95.9 million, is now closer, the company said, calling the approval a ‘major step forward’. The acquisition still requires no objection from Switzerland’s Financial Market Supervisory Authority or FINMA, and approval from the central bank of Ireland. Liontrust added that application to the financial regulators in Luxembourg, Italy and Hong Kong are in progress, with decisions anticipated in the next three months. Further, two major proxy agencies, ISS and Glass Lewis, have recommended that GAM shareholders back the takeover at the extraordinary general meeting next week Friday. They also recommended GAM shareholders vote against NewGAMe SA’s proposals to remove the existing board, replace them with NewGAMe’s slate of proposed directors, issue a dilutive convertible bond and launch a special audit. NewGAMe’s proposed candidate for chair, Antoine Spillmann, on Tuesday said that Liontrust does not have the support it needs to proceed with the acquisition of GAM. NewGAMe and Bruellan, which includes French telecommunications billionaire Xavier Niel and which hold a 9.6% stake in GAM, on Tuesday requested that the extraordinary general meeting be delayed from Friday next week to the following Wednesday, August 23, ‘to allow shareholders to vote with the full knowledge of the outcome of Liontrust’s offer’. GAM in July brought forward the EGM to August 18 from August 25, which NewGAMe strongly criticised, as it said this was forcing shareholders to vote on its proposals before the result of Liontrust’s offer are known, as the offer period of Liontrust’s exchange offer runs until August 23. NewGAMe is controlled by Rock Investment, which is itself owned by NJJ Holding, Niel’s personal holding company. NewGAMe, alongside Geneva-based wealth manager Bruellan, back in May said Liontrust’s offer undervalues GAM. If their date change is denied, they will withdraw proposals for the EGM and ask for a new EGM to be held after the results of Liontrust’s takeover offer are known. Liontrust shares were 0.4% lower at 625.00 pence each on Tuesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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