Hedge Fund Operator GLG Partners Comes Public Via Acquisition (FRH, GLG)

GLG Partners, an alternative asset manager with gross assets under management of over $20 Billion has announced that it plans to access the public markets through a reverse acquisition transaction with Freedom Acquisition Holdings, Inc. (FRH-AMEX).  The transaction values GLG at approximately $3.4 billion based on Freedom’s closing price on June 22, 2007, and has been unanimously approved by the board of Freedom.

The owners of GLG will receive from Freedom $1 billion in cash and 230 million shares of Freedom common stock on a fully diluted basis. The transaction is subject to Freedom shareholder approval, regulatory approval and other customary closing conditions.  If al terms are met and approved, the deal is expected to close in early Q4, 2007.

The new company will be named GLG Partners, Inc. and will trade on the New York Stock Exchange under the ticker symbol "GLG" upon completion. GLG will also explore the merits of a dual listing in Europe. Freedom’s shareholders will own approximately 28% and GLG equity holders will own 72% of the combined company’s shares on a fully diluted basis. GLG’s equity holders have committed to reinvest approximately 50% of their after tax cash proceeds into GLG’s funds at full fees.

GLG is the largest independent alternative investment manager in Europe and the eleventh largest alternative asset manager in the world.  GLG manages over 40 funds, as well as managed accounts for high net worth individuals and institutions, using both alternative and long only strategies and products.

Shares of FRH are trading up 17% in pre-market trading after an end of day run Friday.  Its 52-week trading range is $8.90 to $10.45 (with $10.45 close Friday) since coming public in late-January 2007 as a blank-check IPO.

Jon C. Ogg
June 25, 2007

JOn Ogg can be reached at [email protected]; he does not own securities in the companies he covers.