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Investec sounds out the boards of BH Global and BH Macro on a possible combination

BH Global BHGU

Investec Wealth & Investment (Invested), the largest shareholder in Brevan Howard-managed BH Macro (BHMG) and a major shareholder in BH Global (BHGG), has approached the boards of both funds with a view to a possible combination.

Potential combination would include an exit opportunity for those shareholders wishing to exit

BHMG said the following in a statement this morning: “The BHMG board views Investec’s proposal as a positive suggestion and would welcome the opportunity to enter into discussions with the BHGG board as soon as practicable regarding the possible combination of the two companies.  Investec has requested that these discussions take place before the launch of the tender offers that have been previously announced by each company following shareholder approval of the changes to their respective management agreements in March. 

Instead of each company potentially continuing in a smaller, more illiquid form, with significantly overlapping investment portfolios, the BHMG board sees significant merit in the suggestion that the interests of shareholders in both BHMG and BHGG would be best served by a combination into a larger, single, company with an exit opportunity being offered to those shareholders who no longer wished to remain invested. 

For the avoidance of doubt this is not an approach for the purposes of the Takeover Code nor is it intended that any combination would be a transaction to which the Takeover Code applies.

Brevan Howard Capital Management LP, the manager of both companies, has confirmed that it is supportive of discussions between the two companies taking place and that it would help facilitate any agreed combination of the two companies, including by not seeking to enforce any notice period or compensation payment under the existing management agreements in connection with the combination.”

BHMG/BHMU/BHME/BHGG/BHGU: Investec sounds out the boards of BH Global and BH Macro on a possible combination

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