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.

Schaeffler/Vitesco: A Three-Step Merger Process

Event-Driven

Vitesco Technologies Group / Event-Driven

<ul>
<li>On 27 November, <a href="https://www.smartkarma.com/entities/schaeffler-ag" target="_blank" data-smartkarma-citation="entities:21712:1" rel="noopener">Schaeffler (SHA GR)</a> increased the cash consideration for <a href="https://www.smartkarma.com/entities/vitesco-technologies-group-ag" target="_blank" data-smartkarma-citation="entities:36684:1" rel="noopener">Vitesco Technologies Group (VTSC GR)</a> by 3.3% to €94.00/share, an implied equity value of €3,762 million, implied EV of €3,416 million.</li>
<li>Although this may not include a takeover premium, and optically the multiple seems low at 3.4x EV/Fwd NTM EBITDA, I update my TP to €94. </li>
<li>A higher counteroffer or another sweetening seems unlikely. I believe it should not be difficult for Schaeffler to achieve 75% acceptances, thus the deal will likely go through.</li>
</ul>


On 27 November, Schaeffler (SHA GR) increased the cash consideration for Vitesco Technologies Group (VTSC GR) by 3.3% to €94.00/share, an implied equity value of €3,762 million, implied EV of €3,416 million.
Although this may not include a takeover premium, and optically the multiple seems low at 3.4x EV/Fwd NTM EBITDA, I update my TP to €94. 
A higher counteroffer or another sweetening seems unlikely. I believe it should not be difficult for Schaeffler to achieve 75% acceptances, thus the deal will likely go through.


Schaeffler/Vitesco: Sweetened Offer Considered Low by the Board