The deal will create a global alternative investment manager with a combined $63bn of assets under management.
“I think the combination of Man and GLG will simply be transformational,” said Manny Roman, co chief-executive of GLG.
“We’re two highly complementary businesses and both of us have always been focused on delivering long-term superior investment performance. From our standpoint, it’s really transformational, because the combination with Man will add significant distribution and structuring capabilities to our business, and it will also deepen our infrastructure and our capital base.”
The cash and shares transaction will see the shareholders of GLG’s 50 per cent publicly listed float receive $4.50 in cash for each GLG share. This represents a premium of about 55 per cent to last Friday’s closing price of $2.91.
The remaining 50 per cent of shareholders, mostly comprising GLG partners, will be paid in Man Group shares, valuing each of their GLG shares at $3.50, a 20 per cent premium to Friday’s closing price.