Liontrust CEO John Ions has written an open letter to GAM shareholders in a bid to encourage backing for the asset manager's "good and fair" acquisition offer.
GAM shareholders have just over a week left to tender their shares in support of the deal, which Ions highlighted is the only one on the table and the only proposal that "provides a viable solution for the business leading to a positive outcome for shareholders".
He said the clock is now "at one minute to midnight for the future of GAM", adding the company is a "loss-making business" needing "significant restructuring" to return to profitability, especially after its external auditors shared uncertainty about the company's ability to continue without external funding.
GAM's largest shareholder backs sale to Liontrust
"Only an asset manager of scale like Liontrust is able to deliver the required synergies to create value for shareholders," Ions wrote in the letter.
"The Liontrust offer has been subjected to full and detailed due diligence. This is important, not just for the protection of our shareholders' capital, but also for the fact that it has allowed us to develop a well-considered plan for how we will combine the businesses and where we will invest post-completion."
The offer has already been publicly endorsed by GAM's senior investment managers, with the Swiss asset manager itself pushing for shareholder approval.
Its largest shareholder, Silchester International Investors, which holds 17.3% of its share capital, said yesterday (13 July) it would support the takeover.
GAM urges shareholders to accept Liontrust bid
The deal, however, has received backlash from investor group NewGAMe and Bruellan - which holds a 9.5% stake in GAM - as it argued the offer undervalued the company.
In the open letter, Ions concluded: "We are asking GAM shareholders to back our offer and tender their shares to Liontrust by 25 July.
"The action of each shareholder matters to enable us all to build a positive future for GAM. Shareholders today only have an offer from Liontrust, which is underpinned by a detailed plan, a strong platform and track record and by the financial resources to make it a success."
