Liontrust has removed the condition requiring GAM to sell its fund management services business from its acquisition offer, it said in an update today (24 July).
The sale of the Luxembourg and Switzerland business to Carne Group was first announced at the end of June and is currently under way, but it will no longer be a requirement for the M&A offer.
The FMS sale is still expected to conclude in Q4 2023, Liontrust said.
Investor group urges GAM shareholders to 'hold off' tendering to Liontrust offer
As a result, the UK asset manager has extended the main period offer for the deal to 4pm on 28 July. "The purpose of the extension […] is to give GAM shareholders further time to consider the waiver of the FMS exit condition, Liontrust's offer and the implications of the pre-announcement of a partial and conditional offer for 17.5% of the issued share capital of GAM by NewGAMe," it explained.
This will also mean the start of the additional acceptance period will shift to 7 August and end on 18 August 2023.
The asset manager added: "Liontrust thanks those GAM shareholders who have already tendered their shares for their support. Liontrust also notes that GAM's senior investment managers have written a second letter to its board stressing their strong support for the Liontrust offer."
David Jacob, chair of GAM, added: "I acknowledge that this has been a challenging journey for shareholders. However, at this critical point, I urge you to tender your shares into the Liontrust offer. By doing this, you protect your investment and have the opportunity to participate in the future value creation from the enlarged firm."
