UK-based hedge fund firm Man Group has agreed to acquire GLG Partners, a US-listed asset management company for approximately $1.6bn.
Pursuant to the merger, GLG public stockholders will receive $4.50 in cash for each share of GLG common stock, representing a premium of approximately 55% over the GLG closing price on May 14, 2010, the last trading day prior to the announcement of the execution of a definitive merger agreement.
Finally, pursuant to the terms of the merger agreement, GLG will make a cash offer to purchase all outstanding warrants for $0.129 per warrant, the closing price for the warrants on the NYSE on May 14, 2010. The closing of the offer to purchase will be conditioned upon the completion of the merger. Upon the effective time of the merger, the warrants will become exerciseable for the right to receive the merger consideration.
Noam Gottesman, chairman and co-CEO of GLG, said: “This is a transformational step for GLG. We have known Man for many years and can be certain that our two businesses are highly complementary, both focused on delivering long-term performance but each with differing client bases and uncorrelated investment strategies.”
Peter Clarke, CEO of Man Grroup, said: “The combination will provide comprehensive and compelling investment solutions to our investors worldwide, meeting investor demands head on and providing the acumen and flexibility investors are seeking in today’s rapidly changing markets.
“The fit between the two businesses is excellent; across investment strategies, geography and investor base. Man’s quantitative and multi-manager expertise complements GLG’s long track record in discretionary investment strategies, and both firms focus on liquid, transparent and dynamic trading.”
The transaction is expected to close in the third quarter of 2010 and following the acquisition, GLG will be a wholly owned subsidiary of Man Group.