European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

Asterion/Retelit: Voluntary Offer, Sweetening Expected

Altice - Next Private: Trading Above Terms

Altice - Next Private Takeover Announcement

Event-Driven

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Asterion saves its takeover on <a href="https://www.smartkarma.com/entities/retelit-spa" target="_blank" data-smartkarma-citation="entities:33432:1" rel="noopener">Retelit SpA (LIT IM)</a>, overcoming the resistance of the second largest shareholder, the group Libyan telecommunications LPTIC (14%), due to:
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<ul>
<li>An improvement in the consideration from €2.85/share to €3/share, allowed to encourage the pace of acceptances, which until 15 September barely reached 10% of the capital. </li>
<li>A reduction in the threshold from from 66.67% to 50% of the share capital plus 1 share.</li>
</ul>
In case Asterion comes to hold directly and/or indirectly (via tender or market purchases) a stake at least equal to 66.67%, the offeror will pay, an additional consideration equal to €0.10/share tendered. The maximum consideration is now €3.1/share.
My initial expectations of positive revision of the terms of the offer have materialised. My TP was €3.04 (see <a href="https://www.smartkarma.com/insights/asterion-retelit-voluntary-offer-sweetening-expected" target="_blank" data-smartkarma-citation="insights:52435" rel="noopener">Asterion/Retelit: Voluntary Offer, Sweetening Expected</a>).
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The tender period will be re-opened for a further period of 5 trading days, for the sessions of 27 September until 1 October, both included, with payment on 8 October. If the legal requirements are fulfilled, Marbles will comply with the obligation to purchase (art. 108, par. 2 of the TUF) and/or with the obligation to purchase (art. 108, par. 1 of the TUF) and the right to purchase (art. 111 of the TUF), which will result in the delisting of Retelit.
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LPTIC, which owns 14%, and other shareholders could choose to sell their stakes, considering the position of control that Asterion will have. Once above 66.67%, it will be easier for the fund to delist Retelit. The market trusts Asterion will cross that threshold, as the gross spread is 0.32%. Deal done, recommendation is to tender.


Asterion saves its takeover on Retelit SpA (LIT IM), overcoming the resistance of the second largest shareholder, the group Libyan telecommunications LPTIC (14%), due to:


An improvement in the consideration from €2.85/share to €3/share, allowed to encourage the pace of acceptances, which until 15 September barely reached 10% of the capital. 
A reduction in the threshold from from 66.67% to 50% of the share capital plus 1 share.

In case Asterion comes to hold directly and/or indirectly (via tender or market purchases) a stake at least equal to 66.67%, the offeror will pay, an additional consideration equal to €0.10/share tendered. The maximum consideration is now €3.1/share.
My initial expectations of positive revision of the terms of the offer have materialised. My TP was €3.04 (see Asterion/Retelit: Voluntary Offer, Sweetening Expected).

The tender period will be re-opened for a further period of 5 trading days, for the sessions of 27 September until 1 October, both included, with payment on 8 October. If the legal requirements are fulfilled, Marbles will comply with the obligation to purchase (art. 108, par. 2 of the TUF) and/or with the obligation to purchase (art. 108, par. 1 of the TUF) and the right to purchase (art. 111 of the TUF), which will result in the delisting of Retelit.

LPTIC, which owns 14%, and other shareholders could choose to sell their stakes, considering the position of control that Asterion will have. Once above 66.67%, it will be easier for the fund to delist Retelit. The market trusts Asterion will cross that threshold, as the gross spread is 0.32%. Deal done, recommendation is to tender.

Asterion/Retelit: Sweetened Offer Means Transaction Will Go Ahead