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.

Value in Rovio Beyond Playtika's Failed Offer

Sega Sammy Holdings/Rovio Entertainment: Agreed Offer

Event-Driven

<ul>
<li>Highly leveraged mobile-games developer Playtika goes mildly hostile in its pursuit for Angry Brids creator Rovio, albeit with a generous possible offer at €9.05/share (11.1x EV/Fwd EBITDA).</li>
<li>The stakes controlled by the Heds total c.32% (source: Rovio), making a hostile offer prone to failure. The shares aren't succeeding though, and trade 36% below its 2017 IPO price.</li>
<li>The shares are trading at a 19.3% discount to the possible offer (and 14.6% discount to my DCF-based fair-value estimate). At this level, they do not seem expensive.</li>
</ul>


Highly leveraged mobile-games developer Playtika goes mildly hostile in its pursuit for Angry Brids creator Rovio, albeit with a generous possible offer at €9.05/share (11.1x EV/Fwd EBITDA).
The stakes controlled by the Heds total c.32% (source: Rovio), making a hostile offer prone to failure. The shares aren't succeeding though, and trade 36% below its 2017 IPO price.
The shares are trading at a 19.3% discount to the possible offer (and 14.6% discount to my DCF-based fair-value estimate). At this level, they do not seem expensive.


Rovio Entertainment

Playtika/Rovio: Fortunate Birds