Nabarro is acting for existing client, Singer Capital Markets Limited (“SCM”) as financial adviser to Greenwich Loan Income Fund Limited (“GLIF”) on its acquisition of Asset Management Investment Company PLC (“AMIC”). The acquisition by AIM-listed GLIF values AMIC, which is listed on the Official List at approximately £12.1 million (based on AMIC’s net asset value on 3 December 2010).
The acquisition is taking the form of a cash offer by GLIF, although certain AMIC shareholders will be entitled to receive shares in GLIF under a share alternative, and will be affected by way of a scheme of arrangement. The cash consideration will be funded through the proceeds of a new loan facility being made available to GLIF.
GLIF’s shares will continue to be traded on AIM and it is also applying for its shares to be admitted to the Official List of the Channel Islands Stock Exchange on completion of the acquisition.
GLIF is a Guernsey-domiciled authorised closed-ended investment company whose objective is to produce a stable and predictable dividend yield, with long term preservation of net asset value. GLIF aims to achieve this objective by investing in secured loans, primarily to “middle market” US companies. AMIC is closed-ended self-managed investment company whose investment objective is the orderly realisation of its portfolio. Its historic objective had been to provide investors with long term growth of capital and revenue through investment in the asset management industry.
Nabarro corporate partner Alasdair Steele, corporate associate Jack Shepherd and banking partner Marc Isaacs are advising SCM. GLIF is being advised by Stephenson Harwood LLP and AMIC by Maclay Murray & Spens LLP.
Commenting on the transaction, corporate partner Alasdair Steele said:
“M&A activity has shown signs of steady increase through 2010 as buyers and sellers have returned to the market and valuation gaps have narrowed. As the year draws to a close, we expect that consolidation transactions such as this, which offer target shareholders the option of a cash exit or to continue participating in the enlarged entity, to be a feature of the M&A market in 2011.”
