01/02/2012 Author: Will Wainewright

Exclusive - GlobeOp takeover not yet done deal, share price rises sharply 

GlobeOp’s £508m ($800.5m) takeover by private equity firm TPG is not yet a done deal, with less than half of the fund administrator’s shareholders definitely behind the agreement, HFMWeek has learned.

Analysts said the listed admin firm, whose share price rose sharply on this morning’s news to nearly 435p - TPG’s cash per share offer - would seek to convince investors about the deal during the coming days.

However, TPG themselves have up to 28 days to put forward their formal offer document, after which there will be a new timeframe for agreement, meaning it could be a protracted process.

Sources close to proceedings told HFMWeek that the deal had firm backing from roughly 43% of GlobeOp’s shareholders.These include GlobeOp’s management, as well as shareholders who have issued firm letters of intent.

Initial documents indicated that 90% shareholder approval was the aim but not a requirement for the deal to go through, meaning less approval could be sufficient. A majority would certainly be required. 

Geo3, a new partnership owned by TPG, signalled their intent to put forward an offer a day before the 2 February deadline. GlobeOp was ranked sixth in HFMWeek’s AuA survey, with single manager assets worth $171bn under administration. 

GlobeOp's corporate communications team could not be reached for comment at the time of going to press.

*UPDATE 6.30pm: It has been confirmed that shareholder support for the deal currrently stands at 44%.