2023-08-21 07:31:10
The Zurich group has indicated that the first tranche of the credit facility granted by Liontrust has already been used to the tune of 10 million francs to finance losses and pension payments in the United Kingdom.
The management of GAM reacted sharply on Monday to the proposal for a convertible bridge loan of 25 million francs presented last Thursday by Rock Investments, holder of 75% of the dissident group of shareholders Newgame, as an alternative to the public offer of purchase (takeover bid) launched by the British fund manager Liontrust.
In its argument, the Zurich group listed on the Swiss Stock Exchange indicated that the first tranche of the credit facility granted by Liontrust has already been used to the tune of 10 million francs to finance losses and pension payments in the Kingdom. United, and that according to the figures released on August 3, the company had an operating loss of around 4 million per month.
Added to this are significant restructuring costs, estimated by Liontrust at approximately 50 million francs on the basis of an audit carried out over a period of nine months, as well as leasing commitments amounting to 40 million.
The amount of the capital contribution necessary to ensure the continuity of GAM’s activities as an independent company over the coming months thus amounts to more than 100 million francs, underlines the management of the former Zurich financial flagship in its press release.
Moreover, such financing would result either in “significant dilution for the current shareholders of GAM” in the event of a capital increase, or in “significant indebtedness of the company” in the event of recourse to external capital.
GAM executives therefore reiterate their support for Liontrust’s offer, calling on Rock Investments to “recognize and accept the realities of the company’s financial situation” in the event that the British competitor’s takeover bid – which has been extended until ‘to (Wednesday) August 23 – would come to fail. The publication of the interim results of the offer is expected the next day.
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