Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Edison Investment Research is terminating coverage on John Laing Group (JLG), Appreciate Group (APP) and Polyphor (POLN). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Previously published reports can still be accessed via our website.

Edison Investment Research is terminating coverage on John Laing Group (JLG), Appreciate Group (APP) and Polyphor (POLN). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Previously published reports can still be accessed via our website.


John Laing Group - Termination of coverage

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

For our next Smartkarma Webinar, we have the pleasure of welcoming back Insight Provider <a href="https://www.smartkarma.com/profiles/jesus-rodriguez-aguilar" target="_blank" data-smartkarma-citation="accounts:5842" rel="noopener">Jesus Rodriguez Aguilar</a> to go over ideas in European Event-Driven. Jesus will examine offers that target FTSE 250 companies (particularly in healthcare and financial services); the real estate sector in Central and Eastern Europe; and special situations in European share classes and holding companies.
<h3>The webinar was hosted on Wednesday, 16 June 2021, 17:00 SGT/HKT.<a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=89974520966" target="_blank" rel="noopener"></a>
</h3>
Watch the session here:
<iframe src="https://www.youtube.com/embed/V5Kk8nkuLA8" width="560" height="315" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe>Or subscribe to our podcast feed and listen on the go:
<iframe src="https://open.spotify.com/embed/episode/34F1xaRo0opzAuBgwai2wy?utm_source=generator" width="100%" height="232" style="border-radius: 12px;" frameborder="0" allowfullscreen="allowfullscreen" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture"></iframe>
Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.

For our next Smartkarma Webinar, we have the pleasure of welcoming back Insight Provider Jesus Rodriguez Aguilar to go over ideas in European Event-Driven. Jesus will examine offers that target FTSE 250 companies (particularly in healthcare and financial services); the real estate sector in Central and Eastern Europe; and special situations in European share classes and holding companies.
The webinar was hosted on Wednesday, 16 June 2021, 17:00 SGT/HKT.

Watch the session here:
Or subscribe to our podcast feed and listen on the go:

Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.

Smartkarma Webinar | European Event-Driven: Top Ideas

European Event-Driven Analyst

Jesus Rodriguez Aguilar

New York-based KKR &amp; Co. unit London-based Aqueduct Bidco Limited has agreed to acquire London-based <a href="https://www.smartkarma.com/entities/john-laing-group-plc" target="_blank" data-smartkarma-citation="entities:22016:1" rel="noopener">John Laing (JLG LN)</a> for 403p in cash, a 27% premium to the closing price on 5 May, the day before it announced that it was in discussions with KKR.
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For an implied equity value of £1,990.3 mn and an implied EV of £2,126.3 mn.
</li>
<li>
This represents 1.6x Fwd P/BV.
</li>
</ul>
John Laing Group plc invests in greenfield infrastructure and then actively manages its investments in projects. KKR has agreed to partner with Equitix, an infrastructure investor, to jointly own John Laing's existing portfolio. Once the acquisition is completed, Equitix will acquire 50% of John Laing's assets though they will still be managed by the original team.
John Laing has an attractive, established portfolio of infrastructure assets and a platform with significant expertise and growth potential. Under KKR's ownership, John Laing could access KKR's available funding, in which could be a transformational deal.  KKR is planning to hold on to John Laing.
John Laing is another FTSE 250 constituent to receive a bid since the beginning of 2021.
Fair value is 313.6p vs a NAV of 320p at YE 2020, before dividends paid, and vs an offer price of 403p. On this basis, the offer price is fair, in my view.
Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, in my view, but considering the deal is highly likely to close, I would be long JLG LN and would take advantage of any bump to build a position.
As economies pull out of the Covid-19 crisis, construction and engineering M&amp;A industry is reviving, driven mainly by private equity buyouts in the infrastructure segment.

New York-based KKR &amp; Co. unit London-based Aqueduct Bidco Limited has agreed to acquire London-based John Laing (JLG LN) for 403p in cash, a 27% premium to the closing price on 5 May, the day before it announced that it was in discussions with KKR.


For an implied equity value of £1,990.3 mn and an implied EV of £2,126.3 mn.


This represents 1.6x Fwd P/BV.


John Laing Group plc invests in greenfield infrastructure and then actively manages its investments in projects. KKR has agreed to partner with Equitix, an infrastructure investor, to jointly own John Laing's existing portfolio. Once the acquisition is completed, Equitix will acquire 50% of John Laing's assets though they will still be managed by the original team.
John Laing has an attractive, established portfolio of infrastructure assets and a platform with significant expertise and growth potential. Under KKR's ownership, John Laing could access KKR's available funding, in which could be a transformational deal.  KKR is planning to hold on to John Laing.
John Laing is another FTSE 250 constituent to receive a bid since the beginning of 2021.
Fair value is 313.6p vs a NAV of 320p at YE 2020, before dividends paid, and vs an offer price of 403p. On this basis, the offer price is fair, in my view.
Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, in my view, but considering the deal is highly likely to close, I would be long JLG LN and would take advantage of any bump to build a position.
As economies pull out of the Covid-19 crisis, construction and engineering M&amp;A industry is reviving, driven mainly by private equity buyouts in the infrastructure segment.

After negative surprises in its last three reports, John Laing Group’s (JLG) Q3 update brought welcome good news. NAV per share rose 2% to 314p as an FX headwind and pension charges failed to offset another strong PPP performance. The performance of the renewable portfolio, now just 22% of the total, was stable. JLG retains its guidance for ‘modest’ underlying NAV growth in H2 and we nudge up our NAV per share forecast from 308p to 310p. The share price stands at a 9% discount to FY20e NAV per share.

After negative surprises in its last three reports, John Laing Group’s (JLG) Q3 update brought welcome good news. NAV per share rose 2% to 314p as an FX headwind and pension charges failed to offset another strong PPP performance. The performance of the renewable portfolio, now just 22% of the total, was stable. JLG retains its guidance for ‘modest’ underlying NAV growth in H2 and we nudge up our NAV per share forecast from 308p to 310p. The share price stands at a 9% discount to FY20e NAV per share.

John Laing Group (JLG) has announced the sale of its Australian wind farm assets for A$285m (£157m), a valuation described as a ‘small uplift’ to book value. This news is significant for two reasons: 1) it provides some reassurance that the book value of JLG’s renewable assets is now relatively conservative; and 2) accounting for about a third of its renewable portfolio, the disposal represents material progress on JLG’s strategy to exit this market. We make no change to our numbers ahead of the company’s Q3 trading statement expected next week.

John Laing Group (JLG) has announced the sale of its Australian wind farm assets for A$285m (£157m), a valuation described as a ‘small uplift’ to book value. This news is significant for two reasons: 1) it provides some reassurance that the book value of JLG’s renewable assets is now relatively conservative; and 2) accounting for about a third of its renewable portfolio, the disposal represents material progress on JLG’s strategy to exit this market. We make no change to our numbers ahead of the company’s Q3 trading statement expected next week.

John Laing Group - Sale of Australian wind farm assets

United Kingdom

John Laing Group plc originates and invests in public sector infrastructure projects. The Company manages major transportation, social and environmental infrastructure, and renewable energy projects, as well as provides investment advisory and asset management services. John Laing Group serves customers worldwide.

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John Laing (JLG LN)

John Laing Group - Termination of coverage

Edison Investment Research is terminating coverage on John Laing Group (JLG), Appreciate Group (APP) and Polyphor (POLN). Please note you should no...

Edison Investment Research

Smartkarma Webinar | European Event-Driven: Top Ideas

On 16 June, 5pm SGT, join us and Jesus Rodriguez Aguilar to go over top ideas in European Event-Driven, including offers that target FTSE 250...

Smartkarma Research

KKR/John Laing: Trading Tight to Terms

Offer price is fair, in my view. Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, but the deal is highly likely to close. Long...

Jesus Rodriguez Aguilar

John Laing Group - Steady as she goes

After negative surprises in its last three reports, John Laing Group’s (JLG) Q3 update brought welcome good news. NAV per share rose 2% to 314p as...

Edison Investment Research

John Laing Group - Sale of Australian wind farm assets

John Laing Group (JLG) has announced the sale of its Australian wind farm assets for A$285m (£157m), a valuation described as a ‘small uplift’ to...

Edison Investment Research

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