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.

CVC Consortium/Hargreaves Lansdown: Recommended Final Offer

Hargreaves Lansdown - Opportunity to take profits

Hargreaves Lansdown - Fourth bid received, likely to be accepted

Event-Driven

<ul>
<li>The private equity consortium (CVC, Nordic Capital, and Abu Dhabi Investment Authority) has upped the possible offer to 1,140p/share in cash, including 30p final dividend, with a rollover equity alternative.</li>
<li>The offer implied valuation of 17.2x NTM forward P/E and dividend yield of 4.25% are historically low for HL. An offer in line with peer's multiples would imply 1,326p.</li>
<li>The rollover equity alternative appears to be intended to give founders a means of sharing in HL's future success. Gross spread is 0.5%.</li>
</ul>


The private equity consortium (CVC, Nordic Capital, and Abu Dhabi Investment Authority) has upped the possible offer to 1,140p/share in cash, including 30p final dividend, with a rollover equity alternative.
The offer implied valuation of 17.2x NTM forward P/E and dividend yield of 4.25% are historically low for HL. An offer in line with peer's multiples would imply 1,326p.
The rollover equity alternative appears to be intended to give founders a means of sharing in HL's future success. Gross spread is 0.5%.


CVC Consortium/Hargreaves Lansdown: Cheap Possible Offer