The deal is set to be completed by September 2010 and would create an alternative investment manager worth £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 at 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 shares of GLG common stock. The GLG stock will be valued at 2.42p a share. Each of the principals, barring the two limited partnerships, will enter a lock-up 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 SocGen 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. 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.