Industrialist Sanjeev Gupta pays £600m in a bond deal with Swiss asset manager GAM
Industrialist Sanjeev Gupta said last night he had kicked off the process of paying £600 million to Swiss asset manager GAM in a bond deal.
Gupta – who owns aluminium and steel plants across Britain – struck an agreement to pay GAM for the bonds earlier this year.
The deal has been seen as a crucial test for both Indian-born billionaire Gupta and GAM, which has been struggling due to an exodus of investors since last July when it suspended one of its star fund managers, Tim Haywood, for misconduct.
It is understood Haywood’s suspension and later dismissal was linked to his investment in risky bonds tied to Gupta’s collection of companies known as GFG Alliance.
A spokesman for GFG Alliance said the transaction has started.
The deal will allow GAM to start paying back investors who want to withdraw their nest eggs from its Absolute Return Bond Fund range, which was shuttered last August.
Gupta has spent several years on a buying spree, taking over steel and other industrial assets.