European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>CVC has withdrawn under Rule 2.8, leaving Veritas Capital’s recommended 940p acquisition as the only live offer.</li>
<li>At 918p, Bodycote offers a 2.40% gross spread and approximately 5.3% annualised return to the expected 15 March Effective Date.</li>
<li>Shareholder meetings are scheduled for 21 October, with regulatory approvals across the US and Europe the main remaining source of timing risk.</li>
</ul>


CVC has withdrawn under Rule 2.8, leaving Veritas Capital’s recommended 940p acquisition as the only live offer.
At 918p, Bodycote offers a 2.40% gross spread and approximately 5.3% annualised return to the expected 15 March Effective Date.
Shareholder meetings are scheduled for 21 October, with regulatory approvals across the US and Europe the main remaining source of timing risk.


Bodycote: CVC Walks, Veritas Pays You to Wait

<ul>
<li>Veritas's recommended 940p offer provides the floor, while CVC remains a potential competing bidder after previously reaching 915p and completing confirmatory due diligence.</li>
<li>Our LBO supports CVC's 915p proposal under base-case assumptions; 975–1,000p requires a lower sponsor return, higher leverage or stronger exit valuation.</li>
<li>At 963.5p, Bodycote trades above our 958p probability-weighted value, with the market already pricing a meaningful probability of a higher offer.</li>
</ul>


Veritas's recommended 940p offer provides the floor, while CVC remains a potential competing bidder after previously reaching 915p and completing confirmatory due diligence.
Our LBO supports CVC's 915p proposal under base-case assumptions; 975–1,000p requires a lower sponsor return, higher leverage or stronger exit valuation.
At 963.5p, Bodycote trades above our 958p probability-weighted value, with the market already pricing a meaningful probability of a higher offer.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Nanofilm Technologies International / Equity Capital Markets

Nanofilm Technologies International (NANO SP)

<div><p><a href="https://www.smartkarma.com/entities/nanofilm-technologies-international" target="_blank" data-smartkarma-citation="entities:29700:1" rel="noopener">Nanofilm Technologies International (NTI SP)</a> designs, manufactures, and assembles its proprietary coating equipment (and auxiliary equipment and spare parts), and develops and provides its surface solutions and advanced materials in-house. At the proposed IPO price of S$2.59 per share, Nanofilm will have a market cap of S$1.7 billion ($1.3 billion). Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Thirteen cornerstone investors will subscriber for 104.3 million of the offer shares.  </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/nanofilm-technologies-ipo-initiation-layer-by-layer" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Nanofilm is an attractive growth story underpinned by proprietary technology, growing addressable markets, high customer stickiness, attractive margin profile and strong cash conversion. Our valuation analysis suggests that the IPO valuation is attractive. </p></div></div></div>

Nanofilm Technologies International (NTI SP) designs, manufactures, and assembles its proprietary coating equipment (and auxiliary equipment and spare parts), and develops and provides its surface solutions and advanced materials in-house. At the proposed IPO price of S$2.59 per share, Nanofilm will have a market cap of S$1.7 billion ($1.3 billion). Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Thirteen cornerstone investors will subscriber for 104.3 million of the offer shares.  In our initiation note, we highlighted that Nanofilm is an attractive growth story underpinned by proprietary technology, growing addressable markets, high customer stickiness, attractive margin profile and strong cash conversion. Our valuation analysis suggests that the IPO valuation is attractive. 

Nanofilm Technologies IPO: Valuation Insights

United Kingdom

Bodycote is the world's largest provider of heat treatment and specialist thermal processing services, including heat treatments, metal joining, hot isostatic pressing, and surface technology. These services enhance the properties of metals and alloys, improving their performance and longevity. The company was founded in 1923 and is headquartered in Macclesfield, United Kingdom.

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Bodycote (BOY LN)

Bodycote: CVC Walks, Veritas Pays You to Wait

CVC has walked away and Bodycote has fallen below Veritas’s 940p offer. We revisit the spread, timetable and remaining regulatory risk.

Jesus Rodriguez Aguilar

Bodycote: Turning Up the Heat on CVC

Bodycote trades above Veritas's 940p offer while CVC remains in play. Our LBO tests how far CVC can stretch and what it would take to support a...

Jesus Rodriguez Aguilar

Nanofilm Technologies IPO: Valuation Insights

Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Our valuation analysis suggests that the...

Arun George

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