Event-Driven Investment Opportunities, Special Situation Investments

Dalius Tauraitis

Event-Driven Investment Opportunities

Special Situation Investments

Focus on event-driven trades and low risk arbitrage opportunities with short term catalysts

Event-Driven

Learning Technologies Group plc provides various e-learning services and technologies to corporate and government clients in the United Kingdom, Switzerland, Rest of Europe, the United States, Canada, and internationally. The company produces interactive multimedia programmes. It also engages in mobile e-learning, bespoke e-learning, and educational games businesses, as well as operates employee benefit trust. In addition, the company provides gomo learning, a software as a service, which offers clients solution for creating, hosting, updating, and tracking their multi-device learning content, as well as Rustici Software that connects learning software for organizations and vendors. Learning Technologies Group plc was founded in 1986 and is based in London, the United Kingdom.

<ul><li>Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.</li><li>Embracer Group and Grifols are addressing discounts through spin-offs and potential privatizations, aiming to eliminate share class disparities.</li><li>Litigation cases for Gold Reserve and Finch Therapeutics could result in substantial financial awards, impacting share valuations significantly.</li></ul>

Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.Embracer Group and Grifols are addressing discounts through spin-offs and potential privatizations, aiming to eliminate share class disparities.Litigation cases for Gold Reserve and Finch Therapeutics could result in substantial financial awards, impacting share valuations significantly.

Active Merger Arbitrage and Litigation Opportunities: Key Insights on Current Financial Market

<ul><li>SSI Tracking Portfolio decreased by 3.1% in October but is up 6.6% year-to-date, with detailed stock performance breakdown available.</li><li>Learning Technologies Group received multiple offers from General Atlantic, with a 10% spread remaining and a PUSU deadline on November 22.</li><li>Microstrategy plans a $42bn capital raise over three years to purchase more bitcoin, with a significant premium to NAV.</li></ul>

SSI Tracking Portfolio decreased by 3.1% in October but is up 6.6% year-to-date, with detailed stock performance breakdown available.Learning Technologies Group received multiple offers from General Atlantic, with a 10% spread remaining and a PUSU deadline on November 22.Microstrategy plans a $42bn capital raise over three years to purchase more bitcoin, with a significant premium to NAV.

SSI Weekly Newsletter: October Performance, Portfolio Updates, and Key Developments

European Event-Driven Analyst

Jesus Rodriguez Aguilar

DS Smith Plc is an International paper company focused on packaging and office products. The Group collects waste paper, manufactures paper, converts corrugated packaging and produces bag-in-box, plastic corrugated and heavy duty corrugated packaging, as well as wholesales office supplies.

<ul>
<li>The EU's new regulatory framework tightens scrutiny on mergers and acquisitions, especially those involving foreign subsidies, to prevent competitive imbalances within its single market and promote fair competition.</li>
<li>From October 2023, companies generating over €500 million in EU revenue and receiving foreign subsidies must notify the European Commission to ensure compliance under the Foreign Subsidies Control.</li>
<li>In its first year, over 100 companies notified acquisitions under the EU’s new regulation, reflecting its broad impact and the Commission’s stricter approach to non-EU subsidy influence in the market.</li>
</ul>


The EU's new regulatory framework tightens scrutiny on mergers and acquisitions, especially those involving foreign subsidies, to prevent competitive imbalances within its single market and promote fair competition.
From October 2023, companies generating over €500 million in EU revenue and receiving foreign subsidies must notify the European Commission to ensure compliance under the Foreign Subsidies Control.
In its first year, over 100 companies notified acquisitions under the EU’s new regulation, reflecting its broad impact and the Commission’s stricter approach to non-EU subsidy influence in the market.


Enhanced Regulatory Scrutiny of M&A in the EU

<ul><li>Learning Technologies Group received a £1/share buyout bid from General Atlantic, with a 12% spread and minimal regulatory risk.</li><li>General Atlantic's bid values LTG at 7.3x 2024E adj. EBITDA and 8.5x adj. EBIT, aligning with VIC's price target.</li><li>Potential competing bids exist, with LTG's board forming an independent committee to evaluate General Atlantic's conditional offer.</li></ul>

Learning Technologies Group received a £1/share buyout bid from General Atlantic, with a 12% spread and minimal regulatory risk.General Atlantic's bid values LTG at 7.3x 2024E adj. EBITDA and 8.5x adj. EBIT, aligning with VIC's price target.Potential competing bids exist, with LTG's board forming an independent committee to evaluate General Atlantic's conditional offer.

Learning Technologies Group Faces Potential Buyout with 12% Upside Amidst Private Equity Interest and Strategic Negotiations

Grifols S.A. develops, manufactures, and markets plasma derivatives, IV Therapy, enteral nutrition, diagnostic systems, and medical materials.

<ul>
<li>Brookfield’s acquisition bid for Grifols has been delayed for a second time due to funding issues, raising investor concerns.</li>
<li>Grifols trades at an 8.7x forward EBITDA, significantly undervalued compared to competitor CSL's 18.2x multiple. Long term the stock looks cheap, provided it fixes its leverage problem.</li>
<li>The delay has increased skepticism about the bid's success (pricing a 49.8% of deal success at a possible offer of €11/share), affecting Grifols' stock, which recently fell to €10/share.</li>
</ul>


Brookfield’s acquisition bid for Grifols has been delayed for a second time due to funding issues, raising investor concerns.
Grifols trades at an 8.7x forward EBITDA, significantly undervalued compared to competitor CSL's 18.2x multiple. Long term the stock looks cheap, provided it fixes its leverage problem.
The delay has increased skepticism about the bid's success (pricing a 49.8% of deal success at a possible offer of €11/share), affecting Grifols' stock, which recently fell to €10/share.


Brookfield Delays Its Takeover Bid for Grifols for a Second Time

European event-driven, risk-arb & special-sits

Europe Event-Driven
European event-driven, risk-arb & special-sits

Active Merger Arbitrage and Litigation Opportunities: Key Insights on Current Financial Market

Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.

Special Situation Investments

Enhanced Regulatory Scrutiny of M&A in the EU

The EU's new regulatory framework tightens scrutiny on M&A, especially those involving foreign subsidies, to prevent competitive imbalances within...

Jesus Rodriguez Aguilar

Learning Technologies Group Faces Potential Buyout with 12% Upside Amidst Private Equity Interest and Strategic Negotiations

Learning Technologies Group received a £1/share buyout bid from General Atlantic, with a 12% spread and minimal regulatory risk.

Special Situation Investments

Brookfield Delays Its Takeover Bid for Grifols for a Second Time

Brookfield’s acquisition bid for Grifols has been delayed for a second time due to funding issues, raising investor concerns.

Jesus Rodriguez Aguilar