Hedge fund manager GLG Partners announced that it plans to access the public markets through a reverse acquisition transaction with Freedom Acquisition Holdings, Inc.
This transaction values GLG at approximately $3.4 billion, in order to finance the acquisition of GLG, Freedom will use the proceeds from its initial public offering and borrow the balance from a third party lender to obtain the $1 billion to pay the cash portion of the purchase price. In addition, Freedom and its subsidiaries will issue 230 million shares of common stock valued at $2.4 billion to the GLG equity holders.
Under the terms of the agreement, the owners of hedge fund manager GLG will receive $1 billion in cash and 230 million shares of Freedom common stock. The combined company will be named GLG Partners, Inc. Shares of the combined company are expected to trade on the New York Stock Exchange under the ticker symbol "GLG".
GLG is the largest independent alternative investment manager in Europe with over $20 billion in assets under management and the eleventh largest alternative asset manager in the world. GLG has built a highly scalable investment platform, infrastructure and support system, which represents a combination of world-class investment talent, cutting-edge technology and rigorous controls and risk management. GLG manages over 40 funds, as well as managed accounts for high net worth individuals and institutions, using both alternative and long only strategies and products.
"This strategic transaction is an important step in building GLG's global business, affording us the opportunity to increase brand awareness and expand in major targeted markets, including the US, Middle East and Asia," said Noam Gottesman, Founder, Managing Director and Co-CEO of GLG.