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

On 5 February, Brown Bidco Ltd., owned by joint offerors Blackstone, GIP and Cascade, announced a $5.62 recommended cash acquisition for <a href="https://www.smartkarma.com/entities/signature-aviation-plc" target="_blank" data-smartkarma-citation="entities:21829:1" rel="noopener">Signature Aviation (SIG LN)</a>, intended to be  implemented by a scheme of arrangement.
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equivalent to 411.33p at the time of the announcement (FX 1.3663 USD/GBP).
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<li>Shareholders may elect to receive the consideration in Sterling at the applicable market exchange rate on the latest practicable date for fixing such rate prior to the relevant payment date.</li>
<li data-bind="visible: !isCollapsed(), html: content">The consideration represents 4.1x EV/Fwd Revenue, 17.4x EV/Fwd EBITDA and 73.9x P/Fwd E.</li>
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Blackstone and GIP wisely agreed to sign a ceasefire in their contest for Signature.
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<li>The recommended 411p offer is a 53% premium to the Signature at the time the fight broke out in public. This premium is a good outcome for the auction, considering that Rudd argued that the company was "desperately undervalued".</li>
<li data-bind="visible: !isCollapsed(), html: content">On a comps base the offer seems generous, which is not surprising given  Sir Nigel Rudd's track record in selling British companies (Pilkington, Boots and Invensys). We are looking at an IRR c. 12%.</li>
<li data-bind="visible: !isCollapsed(), html: content">
Interloper risk is low, given Cascade and BMGFT's 19% stake.
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</ul>
As of Monday 15 February intra-day trading, gross USD adjusted spread was -0.48%, therefore it would be wise to stay clear of this trade until the gross adjusted spread reaches a positive value above 2%.

On 5 February, Brown Bidco Ltd., owned by joint offerors Blackstone, GIP and Cascade, announced a $5.62 recommended cash acquisition for Signature Aviation (SIG LN), intended to be  implemented by a scheme of arrangement.


equivalent to 411.33p at the time of the announcement (FX 1.3663 USD/GBP).

Shareholders may elect to receive the consideration in Sterling at the applicable market exchange rate on the latest practicable date for fixing such rate prior to the relevant payment date.
The consideration represents 4.1x EV/Fwd Revenue, 17.4x EV/Fwd EBITDA and 73.9x P/Fwd E.

Blackstone and GIP wisely agreed to sign a ceasefire in their contest for Signature.

The recommended 411p offer is a 53% premium to the Signature at the time the fight broke out in public. This premium is a good outcome for the auction, considering that Rudd argued that the company was "desperately undervalued".
On a comps base the offer seems generous, which is not surprising given  Sir Nigel Rudd's track record in selling British companies (Pilkington, Boots and Invensys). We are looking at an IRR c. 12%.

Interloper risk is low, given Cascade and BMGFT's 19% stake.


As of Monday 15 February intra-day trading, gross USD adjusted spread was -0.48%, therefore it would be wise to stay clear of this trade until the gross adjusted spread reaches a positive value above 2%.

Signature Aviation - PE Consortium Agreed Offer