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.

PNM Resources - Iberdrola, Work-In-Progress, Attractive Spread

Iberdrola (Avangrid)/PNM Resources: Regulator's Reprimand and Capital Increase

Hearing Examiner Recommends Against Iberdrola (Avangrid)/PNM Resources Deal

Infigen Energy’s Off-Market Takeover Offer

Event-Driven

<a href="https://www.smartkarma.com/entities/iberdrola-sa" target="_blank" data-smartkarma-citation="entities:21276:1" rel="noopener">Iberdrola SA (IBE SM)</a> accelerates its expansion in the United States. <a href="https://www.smartkarma.com/entities/avangrid-inc" target="_blank" data-smartkarma-citation="entities:26503:1" rel="noopener">Avangrid Inc (AGR US)</a> , an 81.5% Iberdrola controlled company has announced an agreement to acquire <a href="https://www.smartkarma.com/entities/pnm-resources-inc" target="_blank" data-smartkarma-citation="entities:16546:1" rel="noopener">Pnm Resources (PNM US)</a>, a New Mexico and Texas power company listed on the NYSE.
Iberdrola offers $50.3 in cash, for a total equity value of $4,317.5 mn (€3,663.5 mn), according to a relevant fact sent to the CNMV. Iberdrola has undertaken to provide Avangrid with "the funds that are necessary" for the price of the transaction.
The offer price represents:
<ul>
<li>10% premium over PNM's price per share at the close of Tuesday 20 October and 19.3% premium to PNM Resources 30-day VWAP</li>
<li>22.8x Capital IQ's consensus P/E estimate</li>
<li>2.2x P/BV</li>
<li>12.6x EV/Forward EBITDA vs. 10.9x for comparable companies.</li>
</ul>
The proposed transaction is all cash and I do not see obvious regulatory issues, therefore I expect the merger arbitrage spread to narrow quickly.

Iberdrola SA (IBE SM) accelerates its expansion in the United States. Avangrid Inc (AGR US) , an 81.5% Iberdrola controlled company has announced an agreement to acquire Pnm Resources (PNM US), a New Mexico and Texas power company listed on the NYSE.
Iberdrola offers $50.3 in cash, for a total equity value of $4,317.5 mn (€3,663.5 mn), according to a relevant fact sent to the CNMV. Iberdrola has undertaken to provide Avangrid with "the funds that are necessary" for the price of the transaction.
The offer price represents:

10% premium over PNM's price per share at the close of Tuesday 20 October and 19.3% premium to PNM Resources 30-day VWAP
22.8x Capital IQ's consensus P/E estimate
2.2x P/BV
12.6x EV/Forward EBITDA vs. 10.9x for comparable companies.

The proposed transaction is all cash and I do not see obvious regulatory issues, therefore I expect the merger arbitrage spread to narrow quickly.

PNM Resources - Iberdrola: Friendly Acquisition