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.

Hedin Group/Pendragon: Fresh Takeover Approach

Event-Driven

<ul>
<li>On 20 November, the Daily Telegraph reported that Pendragon intends to back Hedin's 29p approach (4.2x EV/Fwd EBITDA). On 21 November, the Panel granted a PUSU extension till 9 December.</li>
<li>My fair value estimate is 39p (WACC 9%, 2.4% perpetual growth), 34% above the prospective bid, and 5.0x EV/Fwd EBITDA and 11.8x Fwd P/E (vs. Inchcape's 6.0x and 11.8x respectively).</li>
<li>The shares are trading at 2.4% gross spread to the prospective offer. Risk/reward seems favorable as I believe there is the possibility of a higher offer. <strong>Long.</strong>
</li>
</ul>


On 20 November, the Daily Telegraph reported that Pendragon intends to back Hedin's 29p approach (4.2x EV/Fwd EBITDA). On 21 November, the Panel granted a PUSU extension till 9 December.
My fair value estimate is 39p (WACC 9%, 2.4% perpetual growth), 34% above the prospective bid, and 5.0x EV/Fwd EBITDA and 11.8x Fwd P/E (vs. Inchcape's 6.0x and 11.8x respectively).
The shares are trading at 2.4% gross spread to the prospective offer. Risk/reward seems favorable as I believe there is the possibility of a higher offer. Long.



Hedin Group/​Pendragon: Closer To Clinch a Deal

Pendragon PLC

Hedin Group/Pendragon: Closer To Clinch a Deal

Pendragon PLC

Hedin Group/​Pendragon: Closer To Clinch a Deal

Hedin Group/Pendragon: Closer To Clinch a Deal