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.

Event-Driven

<ul>
<li>Prior to announcement, net cash of <a href="https://www.smartkarma.com/entities/boiron-sa" target="_blank" data-smartkarma-citation="entities:21404:1" rel="noopener">Boiron SA (BOI FP)</a> represented 1/3rd of market cap. Most of that cash will now be distributed, conditional on deal success. </li>
<li>Although the premium is 36%, at 9.2x EV/Fwd EBIT, the offer seems cheap vs. comparables. The deal is neutral for the Boirons, whom will get a c.€126 million special dividend.</li>
<li>The offer facilitates the entry of a private equity healthcare specialist. Delisting requires acceptances from 57.6% of the float. Gross spread is +0.4%. Investors may require an offer around €52.</li>
</ul>


Prior to announcement, net cash of Boiron SA (BOI FP) represented 1/3rd of market cap. Most of that cash will now be distributed, conditional on deal success. 
Although the premium is 36%, at 9.2x EV/Fwd EBIT, the offer seems cheap vs. comparables. The deal is neutral for the Boirons, whom will get a c.€126 million special dividend.
The offer facilitates the entry of a private equity healthcare specialist. Delisting requires acceptances from 57.6% of the float. Gross spread is +0.4%. Investors may require an offer around €52.


Opportunistic Deal with Grounds for a Bump-Up