Transfer of Lehman Exposure from GLG funds

RNS Number : 5503K

Man Group plc

18 July 2011

 



Press Release

 

 

18 July 2011

TRANSFER OF LEHMAN EXPOSURE FROM FUNDS MANAGED BY GLG

Man Group ("Man") has entered into a series of transactions to acquire, at current net asset value, all the residual exposure to the Lehman estates from funds managed by its wholly owned subsidiary, GLG Partners LP. These transactions are mainly relevant to GLG's European Long Short and North American Opportunity strategies.   

The total consideration for the transactions is $355 million, payable in cash. In return, Man will be entitled to benefit from, or bear the risk of, any change to the net asset value of the claims, with the funds sharing upside in limited circumstances. Man will be entitled to the proceeds of each claim as and when it is distributed by the relevant Lehman estate, although the precise timing of receipts is difficult to determine given the complexity of the Lehman insolvencies. 

The board directors of the relevant funds have received independent financial and legal advice in respect of the transactions. 

In its 7 July Interim Management Statement, Man confirmed that it had a regulatory capital surplus of around $900 million, net cash of around $900 million and total available liquidity resources of around $4.8 billion. The regulatory capital impact of the transactions is expected to be around $50 million and they are expected to have a negligible impact on Man's net interest expense.

Peter Clarke, Chief Executive of Man, said:  "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. In this way, Man can use its resources productively to provide clarity for fund investors and the opportunity to grow assets in the affected funds more quickly."   

Enquiries

Miriam McKay

Head of Investor Relations and Financial Communications

[phone]

[e-mail]

David Waller

Head of Media Relations

[phone]

[e-mail]

Maitland (PR adviser to Man)

George Trefgarne

[phone]

About Man

Man is a world-leading alternative investment management business. It has expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities. Man's funds under management at 30 June 2011 were $71.0 billion.

The original business was founded in 1783. Today, Man Group plc is listed on the London Stock Exchange and is a member of the FTSE 100 Index with a market capitalisation of approx. £4.5 billion.

Man Group is a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes. Further information can be found at www.mangroupplc.com.

Forward looking statements and other important information

This document contains forward-looking statements with respect to the financial condition, results and business of Man Group plc. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. Man Group plc's actual future results may differ materially from the results expressed or implied in these forward-looking statements.

The content of the websites referred to in this announcement is not incorporated into and does not form part of this announcement.

Nothing in this announcement should be construed as or is intended to be a solicitation for or an offer to provide investment advisory services.

 

END

 

 

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