GLG hedge fund to go public in U.S.
A London hedge fund manager will go public by merging with New York's Freedom Acquisition Holdings.
GLG Partners LP, the third-argest hedge fund manager in Europe, will go public by merging with Freedom Acquisition Holdings Inc.
The London-based alternative asset manager will sell a $1 billion minority stake to New York-based Freedom, plus 230 million shares, worth $2.4 billion.
The new company, GLG Partners Inc., will also trade on the New York Stock Exchange under the ticker “GLG.”
Freedom’s shareholders will own about 28% of the new entity, while current GLG equity holders will own 72% of the shares on a fully diluted basis.
Freedom will fund the acquisition using the proceeds from its initial public offering and borrowing up to $570 million from a third party lender.
Perella Weinberg Partners will serve as GLG’s financial adviser, while Citi will guide Freedom.
Pending shareholder approval from Freedom’s investors, regulatory approval and other closing conditions, the transaction should be complete near the beginning of the fourth quarter this year.
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