Liontrust Asset Management is exploring a takeover of GAM Holding, its struggling Zurich-listed peer.
Sky News has learnt Liontrust is amongst numerous events which have been actively contemplating a bid for GAM, which has been engulfed in turmoil linked to the collapse of Greensill Capital, the controversial provide chain finance group.
It was unclear on Tuesday whether or not Liontrust would desk a proper supply for GAM, which Sky News revealed in December had employed UBS to advise on an public sale.
GAM – which stands for Global Asset Management – has seen its shares halve within the final 12 months amid uncertainty over its future, and now has a market worth of simply CHF95m (£85m).
Liontrust, which is valued on the London inventory market at £625m, could be a logical purchaser of GAM from an industrial perspective, in keeping with business executives.
However, it too has confronted company governance points in latest weeks, with two of its non-executive administrators lately resigning, reportedly in protest on the 12-year tenure of its chair, Alastair Barbour.
A mix of Liontrust, which is run by chief govt Jon Ions, and GAM would create an asset administration group with roughly £100bn underneath administration.
GAM, which additionally explored a sale 4 years in the past, is scheduled to announce its delayed 2022 outcomes subsequent week alongside its first-quarter interim assertion.
David Jacob, GAM chairman, stated alongside its most up-to-date quarterly outcomes: “Despite probably the most difficult market backdrop seen in years, it’s pleasing to see the persevering with energy in our funding efficiency and the great progress we’ve made to simplify our enterprise.
“Nevertheless, we are constantly reviewing the progress of the firm, and we are committed to ensuring that our strategy is appropriate and in the interests of all our stakeholders.”
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Liontrust and GAM each declined to remark.
Content Source: information.sky.com