Man Group takes over GLG in £1bn deal
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Man Group is to acquire GLG Partners in a deal worth £1.1bn. Set to complete by September 2010, it would create an alternative investment manager with a value of £43.6bn.
The acquisition is structured as a cash offer to GLG public shareholders and a share offer to the firm’s principals.
GLG public stockholders will receive 3.12p in cash per share of GLG common stock, representing a premium of 55 per cent on the last business day closing price for GLG on May 14, 2010.
GLG’s principals will receive 1.0856 new Man shares for each of their holdings of GLG common stock. GLG stock will be valued at 2.42p a share.
Each of the principals, barring the two limited partnerships, will enter a lock-in agreement of up to three years. They will have the ability to dispose of up to a third of shares subject to the agreement after the second anniversary.
GLG currently has £16.4bn of assets under management. The firm was founded in 1995 and moved into the UK retail space following its acquisition of Société Générale UK Asset Management last year.
Man chief executive Peter Clarke says: “The fit between the two businesses is excellent across investment strategies, geography and investor base.”
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