Liontrust pays 30% less for Occam after assets tumble

Liontrust Asset Management said today it had completed the takeover of Occam but for a much lower price following a fall in assets under management.

The group first announced in August it had entered into a conditional agreement to buy emerging markets specialist Occam but it will now pay 30% less than previously agreed after assets under management at the target firm tumbled.

Liontrust said Occam’s AUM had fallen to $139m by the end of September, caused mainly by the sell-off seen across markets. This opened up a clause in the agreement which allowed it to scrap the bid if assets fell below $150m.

However, Liontrust said it would see the deal through regardless of the falls, for a lower price.

“Notwithstanding the fall in AUM, it remains the board’s view that it is in the best interests of the shareholders of the company to complete the acquisition but on the basis of a reduced level of consideration,” it said.

“Liontrust has been in further negotiations with Occam and, on 4 October 2011, entered into a variation agreement to the agreement with Occam such that the total consideration due under the amended agreement is reduced by 30%.”

The takeover completed yesterday, Liontrust added. A finalised price will be revealed shortly.

The deal brings the management of four Dublin-based funds and two Cayman Islands-domiciled hedge funds to Liontrust, with the funds being rebranded and three of them renamed.

The Dublin funds are: Liontrust Asia Absolute Return (formerly Occam Asia Absolute Return), Liontrust Asia (Occam Asia Focus), Liontrust Pan European (Occam Europe Focus) and Liontrust Emerging Markets Absolute Return (Occam Emerging Markets Opportunities).

The Cayman Islands funds are now called the Liontrust Sorbus and Liontrust Diversity funds.

The Liontrust Asia and Liontrust Asia Absolute Return funds are managed by Mark Williams while Eoghan Flanagan and James Mellersh manage the Liontrust Emerging Markets Absolute Return fund.

James Inglis-Jones and Gary West have taken over as managers of the Liontrust Pan European and Liontrust Sorbus funds.


This article was first published on Investment Week.

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