External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>AGR minority-squeeze out arbitrage presents a profitable opportunity for arbitrage investors</li><li>Buffett's endorsement of arbitrage as a cash management strategy adds credibility to potential returns</li><li>Current premium AGR is trading at indicates confidence in a higher offer, making it an attractive short-term investment opportunity for higher returns</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

AGR minority-squeeze out arbitrage presents a profitable opportunity for arbitrage investorsBuffett's endorsement of arbitrage as a cash management strategy adds credibility to potential returnsCurrent premium AGR is trading at indicates confidence in a higher offer, making it an attractive short-term investment opportunity for higher returnsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Avangrid Inc (AGR) - Sunday, Apr 21, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Analyzing Avangrid’s recent financial performance, it is clear that the company has demonstrated robust execution of its strategic plans and financial goals amidst various challenges.</li><li>Avangrid’s focus has been on expanding its footing in the realm of sustainable energy solutions across the United States, which aligns well with the growing shift toward renewable energy sources.</li><li>In 2023, Avangrid reported achieving a 19% growth in adjusted earnings per share, accounting for $2.09, which surpassed its initial projections.</li></ul>

Analyzing Avangrid’s recent financial performance, it is clear that the company has demonstrated robust execution of its strategic plans and financial goals amidst various challenges.Avangrid’s focus has been on expanding its footing in the realm of sustainable energy solutions across the United States, which aligns well with the growing shift toward renewable energy sources.In 2023, Avangrid reported achieving a 19% growth in adjusted earnings per share, accounting for $2.09, which surpassed its initial projections.

Avangrid Inc.: Initiation of Coverage - Their Business Strategy & Increased Investments in Renewable Energy Projects As Key Growth Levers! - Major Drivers

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Post-March announcement, investors bought shares of <a href="https://www.smartkarma.com/entities/avangrid-inc" target="_blank" data-smartkarma-citation="entities:26503:1" rel="noopener">Avangrid (AGR US)</a>  in the hope of an offer sweetening, which was flagged here, as Iberdrola got $6 billion from its Mexico exit.</li>
<li>The improved $35.75/shareoffer was made in response to potential resistance from prospective minority shareholders, as the deal needs the approval of a majority of these non-Iberdrola stakeholders.</li>
<li>Spread is 3.2%/5.55% (gross/annualised) assuming $1.4667 in dividend payments (three dividends of $0.44 and a prorated dividend of $0.1467) and settlement on 30 December. Long.</li>
</ul>


Post-March announcement, investors bought shares of Avangrid (AGR US)  in the hope of an offer sweetening, which was flagged here, as Iberdrola got $6 billion from its Mexico exit.
The improved $35.75/shareoffer was made in response to potential resistance from prospective minority shareholders, as the deal needs the approval of a majority of these non-Iberdrola stakeholders.
Spread is 3.2%/5.55% (gross/annualised) assuming $1.4667 in dividend payments (three dividends of $0.44 and a prorated dividend of $0.1467) and settlement on 30 December. Long.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/iberdrola-sa" target="_blank" data-smartkarma-citation="entities:21276:1" rel="noopener">Iberdrola SA (IBE SM)</a> launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary <a href="https://www.smartkarma.com/entities/avangrid-inc" target="_blank" data-smartkarma-citation="entities:26503:1" rel="noopener">Avangrid (AGR US)</a>. Premium is 6.8%, and the cost c. $2.5 billion.</li>
<li>The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.</li>
<li>Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.</li>
</ul>



Iberdrola SA (IBE SM) launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary Avangrid (AGR US). Premium is 6.8%, and the cost c. $2.5 billion.
The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.
Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Murakami-San now owns far more in <a href="https://www.smartkarma.com/entities/mitsui-matsushima-co-ltd" target="_blank" data-smartkarma-citation="entities:13569:1" rel="noopener">Mitsui Matsushima (1518 JP)</a> than he can easily get out of other than by corporate action. Murakami-san is not a dumb guy. He knows this.</li>
<li>The unique investigative shareholder register confirms what has been long rumoured about a certain shareholder activist in <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>. It is also informative for what isn't present.</li>
<li>
<a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a>'s discount to NAV and implied stub widened after Fabricio Bloisi's CEO appointment the previous week. But the sell-down of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> to buy-back Prosus will continue.</li>
</ul>


Murakami-San now owns far more in Mitsui Matsushima (1518 JP) than he can easily get out of other than by corporate action. Murakami-san is not a dumb guy. He knows this.
The unique investigative shareholder register confirms what has been long rumoured about a certain shareholder activist in L'Occitane (973 HK). It is also informative for what isn't present.

Prosus (PRX NA)'s discount to NAV and implied stub widened after Fabricio Bloisi's CEO appointment the previous week. But the sell-down of Tencent (700 HK) to buy-back Prosus will continue.


Last Week in Event SPACE: Mitsui Matsushima, L'Occitane, Prosus/Tencent, EOFlow

United States

Avangrid, Inc. operates as an energy services holding company. The Company engages in the regulated energy transmission and distribution business through wind and solar power, as well as natural gas utilities. Avangrid serves customers in the United States.

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Avangrid (AGR US)

Avangrid Inc (AGR) - Sunday, Apr 21, 2024

Current premium AGR is trading at indicates confidence in a higher offer, making it an attractive short-term investment opportunity for higher returns

Value Investors Club

Avangrid Inc.: Initiation of Coverage - Their Business Strategy & Increased Investments in Renewable Energy Projects As Key Growth Levers! - Major Drivers

Analyzing Avangrid’s recent financial performance, it is clear that the company has demonstrated robust execution of its strategic plans and...

Baptista Research

Iberdrola/Avangrid: Spread

Post-March announcement, investors bought shares of Avangrid (AGR US) in the hope of an offer sweetening, which was flagged here, as Iberdrola got...

Jesus Rodriguez Aguilar

Iberdrola/Avangrid: Logical Move

Iberdrola SA offers $34.25/share to acquire minorities in US subsidiary Avangrid, with a 6.8% premium and $2.5 billion cost. The market was...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Mitsui Matsushima, L'Occitane, Prosus/Tencent, EOFlow

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Avangrid Inc (AGR) - Sunday, Apr 21, 2024

Current premium AGR is trading at indicates confidence in a higher offer, making it an attractive short-term investment opportunity for higher returns

Value Investors Club

Avangrid Inc.: Initiation of Coverage - Their Business Strategy & Increased Investments in Renewable Energy Projects As Key Growth Levers! - Major Drivers

Analyzing Avangrid’s recent financial performance, it is clear that the company has demonstrated robust execution of its strategic plans and...

Baptista Research

Iberdrola/Avangrid: Spread

Post-March announcement, investors bought shares of Avangrid (AGR US) in the hope of an offer sweetening, which was flagged here, as Iberdrola got...

Jesus Rodriguez Aguilar

Iberdrola/Avangrid: Logical Move

​Iberdrola SA offers $34.25/share to acquire minorities in US subsidiary Avangrid, with a 6.8% premium and $2.5 billion cost. The market was...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Mitsui Matsushima, L'Occitane, Prosus/Tencent, EOFlow

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Iberdrola SA offers $34.25/share to acquire minorities in US subsidiary Avangrid, with a 6.8% premium and $2.5 billion cost. The market was...