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>Searchlight agreed to acquire via scheme of arrangement UK asset manager <a href="https://www.smartkarma.com/entities/gresham-house-plc" target="_blank" data-smartkarma-citation="entities:39932:1" rel="noopener">Gresham House PLC (GHE LN)</a> for 1,105p/share in cash, c.£470 million, 12.6x EV/Fwd NTM EBITDA, 17.6x Fwd P/E. Terms are final.</li>
<li>Irrevocables plus letters of intent total 33%. Although the consensus median TP is 1,170p/share (c. 5.8% higher), it seems difficult to argue with a 63% premium.</li>
<li>Taking 680p break, the shares are pricing an 89% probability of completion. Spread is 4.3%/10.3% (gross/annualised), which explains why the shares have been liquid since the offer announcement. Long.</li>
</ul>


Searchlight agreed to acquire via scheme of arrangement UK asset manager Gresham House PLC (GHE LN) for 1,105p/share in cash, c.£470 million, 12.6x EV/Fwd NTM EBITDA, 17.6x Fwd P/E. Terms are final.
Irrevocables plus letters of intent total 33%. Although the consensus median TP is 1,170p/share (c. 5.8% higher), it seems difficult to argue with a 63% premium.
Taking 680p break, the shares are pricing an 89% probability of completion. Spread is 4.3%/10.3% (gross/annualised), which explains why the shares have been liquid since the offer announcement. Long.


Searchlight/Gresham House: Attractive Spread