Liontrust Asset Management Share Discussion Threads

[topvest] 24/8/2023 18:16

Yes, once GAM fails then Liontrust would, I think be a secured creditor, being possibly able to buy the business for a lower amount maybe in consideration for thr debt owing.

[spectoacc] 24/8/2023 13:37

Possibly, but would you want to chuck money at them, surely better to let them fail.

Think if I'd have been a GAM shareholder I'd have accepted.

[topvest] 24/8/2023 13:24

It looks like the first tranche has been paid. It appears to show that Liontrust will be in a very strong position if GAM run out of cash. Maybe this is the fallback plan now as I am not sure GAM are going to be a going concern without serious additional cash funding. Maybe Liontrust have only lost the first round!?

[spectoacc] 24/8/2023 13:15

Good spot. Alternatively, if GAM get into serious difficulty, could LIO lose the money?

Mind you, compared to the over £11m of fees, doesn't seem so much!

[topvest] 24/8/2023 13:08

What happens to this?

"Liontrust has also agreed to provide GAM with two equal tranches of short-term secured Financial Support in an aggregate amount of up to £17.8 million under two separate facility agreements. The first tranche was made available under the Tranche 1 Facility Agreement which was entered into prior to execution of the Transaction Agreement and the publication of the Pre-Announcement and the Announcement. The final maturity date under the Tranche 1 Facility Agreement is 31 December 2023."

If its not repaid and GAM get into financial difficulty then surely they can pick up the pieces?

[trident5] 24/8/2023 12:33

There's a report that GAM need c100m SFR (£90m) to shore up losses, restructing and pension costs. Dodged a bullet?

[2wild] 24/8/2023 10:48

Not sure that's fair. If sentiment towards a sector and therefore LIO share price haď not tanked, may well have gone through.

[trident5] 24/8/2023 10:05

Not really grandstanding though is it mate, it's a company that has grown by a series of acquisitions; although they seem to have badly miscalculated here.

[pyglet] 24/8/2023 09:49

Maybe it can get back to concentrating on getting the share price back up instead of eating everyone's money elsewhere grandstanding.

[2wild] 24/8/2023 09:12

Managed to bag a few at 589p last week. Considering 12 month high is £13 and dividend yield over 10%, still look a massive bargain.

[trident5] 24/8/2023 07:24

Yes, I think the fear was that L would load up with a higher offer.

[r2oo] 24/8/2023 07:22

Well, the market liked that news then!

[thelongandtheshortandthetall] 24/8/2023 06:56

Surely the divi can be paid from the cash pile while we wait for conditions to improve.
:)

[trident5] 24/8/2023 06:37

Hostage to fortune with that dividend statement.

2023 profits were £39m and AUM still seems to be falling, and now they have £9m in costs for the aborted takeover. A 72p dividend would see an outflow of c£46m.

[thelongandtheshortandthetall] 24/8/2023 06:30

72p divi maintained.
Ok. Now we have removed the uncertainty of the GAM situation.👍

[spectoacc] 24/8/2023 06:24

Seem to recall it was Unilever who racked up an incredible £50m "defending" a takeover bid (Buffett & co). £50m! How?

LIO have just spend over £11,000,000 of shareholders' money on:

"...Corporate finance, extended legal expenses incurred in multiple jurisdictions as well as accountancy services and the provision of third-party due diligence."


Why all that should come to more than a few hundred k is beyond me.

[mngf] 24/8/2023 06:11

Advisory market is the place to be, get paid regardless of outcome

[spectoacc] 24/8/2023 06:08

£11m peed up the wall.

[stevenlondon3] 20/8/2023 09:35

The GAM share price has now weakened to 46c. I suspect there are a lot of holders leaving acceptance to the last couple of days. If a shareholder does not accept Liontrust then 20% of holding gets sold to Newgam...what value is place on the rump? "Unlock significant value" ...if it had that value there would have been other bidders would be my thinking.

[skanjete2] 19/8/2023 14:30

If they have total control, ownership could dilute at a fast pace for shareholders.

How can they ask for total control if they aren't even the biggest shareholder?
Let them follow the usual way : first acquiring a controlling stake, and then ask for control...

As a GAM shareholder, one has to be very naive to give them control...

[dealy] 19/8/2023 10:18

They can have control. Shareholders have ownership. The NewGAMe folks are very smart and have deep pockets. If the company performs under their direction, then all Shareholders will benefit

[skanjete2] 19/8/2023 09:59

Neither the proposition of NewGam will fly.

They offer a short term loan, but expect to have 100% control with only 9,6% of the share in possession?

It seems to me that the Liontrust is 1 bird in the hand and the NewGam offer 2 birds in the sky. Though decision for the GAM shareholders... Oh and the third option of course is only sky... and no birds at all.

[dealy] 19/8/2023 09:14

all share prices are bombed out at present. last week was just a liquidation sale for small caps. one thing for sure though: the offer is not attractive for GAM shareholders. Also Xavier Neil is a well respected billionaire who bought the third largest mobile operator in Switzerland (Salt) with his own money. He is highly respected in Switzerland, France and Germany. He and his partners have also offered a loan to GAM so they are not stuck with the Liontrust offer. So this deal is not going to fly for Liontrust