Man Group to acquire Lehman exposure from GLG funds
Man Group is attempting to acquire all the residual exposure to the Lehman estates from GLG managed funds.
Man Group acquired GLG Partners in a deal worth £1.1 billion in May 2010.
The group is aiming to acquire the estates at current net asset value, taking the total consideration for the transactions to $355m (£220m) which will be payable in cash. Man Group will then be liable for any change to the net asset value of the claims.
In a statement, Man Group confirmed the regulatory capital impact of the transactions is expected to be around $50m and will have a “negligible impact on Man’s net interest expense.”
Peter Clarke, chief executive of Man, says: “These transactions will remove the remaining uncertainty from funds with residual claims against the Lehman estates, to the benefit of both existing and new investors.”