8. Janus Henderson Group plc (NYSE:JHG)
Number of Hedge Fund Holders: 45
On March 6, Evercore ISI raised its price recommendation on Janus Henderson Group plc (NYSE:JHG) to $53 from $49. The firm reiterated an In Line rating on the shares. Evercore said it adjusted targets across the group after taking an “early look” at February and Q1 traditional asset manager flows.
On March 11, Reuters reported that Janus Henderson said its board had determined that Victory Capital’s proposal to acquire the asset manager was not superior to the take-private transaction with Nelson Peltz’s Trian and General Catalyst. Victory had made its $8.6 billion offer for Janus public last month. The bid increased pressure on the company, which had already agreed to a $7.4 billion buyout by Trian and General Catalyst. Janus said Victory’s latest proposal was not actionable because it presented “significant closing risk and uncertain value.”
The company also pointed to several concerns, including uncertainty around securing the required 75% client consent threshold needed to complete the proposed Victory deal. Janus Henderson Group CEO Ali Dibadj wrote in a memo that several key clients had indicated they would have serious reservations about maintaining relationships with the firm if it moved forward with a deal involving Victory Capital. Victory Capital responded by saying Janus had not meaningfully engaged with its proposal. The firm argued that the concerns raised by Janus’ special committee could be addressed through more detailed discussions.
Janus also said Victory’s projected synergies suggested aggressive cost reductions that could disrupt systems, lead to departures among investment staff, and weaken compliance functions. Bill Katz of TD Cowen said another bidder was unlikely to appear, noting that any competing proposal would likely require similar cost savings.
The company added that Trian Fund Management, which holds 20.7% of its shares, plans to oppose the Victory proposal. Janus also said Victory had not offered to cover the $297M termination fee associated with the separate deal involving General Catalyst. The board reiterated its recommendation that shareholders approve the Trian-led transaction at the April meeting.
Janus Henderson Group plc (NYSE:JHG) is a UK-based independent global asset manager that focuses on active investment across several asset classes. The company manages a wide range of investment products for institutional and retail investors across four main capabilities: equities, fixed income, multi-asset, and alternatives.
