Associated Capital Group has launched an offer to buy up to 1 million of its class A common shares in return for GAMCO Investors Inc. class A common shares that it beneficially owns.
For each Associated Capital class A common share validly tendered and not withdrawn, the company will provide each shareholder with 1.35 GAMCO class A common shares and cash to make up for any fractional shares of GAMCO's class A common stock, without interest and less any applicable withholding taxes. The exchange rate is fixed, the company said.
If the exchange offer is fully subscribed, the company will buy back about 22.5% of its outstanding class A common shares. If the offer is oversubscribed, the company may also swap up to an additional 88,948 of its class A common shares for GAMCO shares, without altering the exchange offer.
Associated Capital beneficially owns 4,393,055 GAMCO class A commons shares as of Feb. 1.
The exchange offer is set to expire March 5 at 5 p.m. ET, unless the offer is extended or terminated.
