Switzerland's Gottex Fund Management Holdings on Monday said that it is buying EIM Group. Gottex is seeking to grow its asset base and create a company with fee-earning assets of close to $10 billion by the first half of 2014.
According to a report by Reuters, the combined group will focus on multi-asset, multi-manager and Asia-focused investments as well as risk and infrastructure. EIM shareholders will receive up to 14 million newly-issued Gottex shares and own approximately 30% of the combined group. 14 million shares would be worth around CHF31.5 million ($35.4 million). This is based on Gottex's closing share price of CHF2.25 on Friday, the report said.
Meanwhile, Gottex shareholders would own the remaining 70% of the enlarged group. The post-merger entity will also retain Gottex chief executive Joachim Gottschalk as its head, Reuters said.
EIM provides strategies for high net worth and institutional investors around the world. The Swiss hedge fund group held $3 billion in assets under management as of the end of September, the report stated.
Gottex and EIM expected the transaction to be completed within three to four months, Reuters said.
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