Deal Details

The acquisition of GLG by Freedom will be a cash and stock deal, with $1 billion coming from cash on Freedom’s balance sheet and up to $570 million taking the form of debt. GLG will also receive 230 million shares (valued at $2.4 billion), 10 million of which the firm will allocate to current employees and indirect LPs. GLG will maintain an ownership position in the public company, with a 72% stake, while Freedom’s shareholders will have a 28% holding, fully diluted. The GLG equity holders, meanwhile, made a commitment to reinvest around 50% of their after-tax cash proceeds back into the GLG funds, at full fees. Freedom will trade on the American Stock Exchange, but once the deal closes, the new company anticipates its shares will trade on the New York Stock Exchange under ticker symbol “GLG.” GLG will also explore a possible dual listing in Europe once the deal is finalized. Also, it’s worth noting that the newly public company would not be impacted by a proposed tax legislation that aims to impose a higher tax treatment on carried interest. The company is structured as a corporation, as opposed to a partnership, and it does not receive a carried interest based on its performance. (c) 2007 Mergers and Acquisitions Journal and SourceMedia, Inc. All Rights Reserved. http://www.majournal.com http://www.sourcemedia.com