European Event-Driven Analyst

Patryk Basiewicz

PGB Research

Event-Driven

On 8 October, <a href="https://www.smartkarma.com/entities/cellnex-telecom-sau" target="_blank" data-smartkarma-citation="entities:21258:1" rel="noopener">Cellnex Telecom Sau (CLNX SM)</a> announced a major acquisition and also announced a rights issue with a dilution of c. 22.5% and proceeds of EUR2.5bn. Given that Cellnex has a varied capital structure, which includes bonds and convertibles, I am aware that clients are using complex strategies to profit from the situation.
These strategies require some comfort with Cellnex's fundamentals and quality of its business model. Below, I discuss Cellnex's fundamentals and provide evidence that indicates Cellnex is a very strong business. In fact, it is a unique investment proposition due to its strategy, competitive position and growth prospects. 
This insight can be also be seen as a Bottom-Up investment case for Cellnex.

On 8 October, Cellnex Telecom Sau (CLNX SM) announced a major acquisition and also announced a rights issue with a dilution of c. 22.5% and proceeds of EUR2.5bn. Given that Cellnex has a varied capital structure, which includes bonds and convertibles, I am aware that clients are using complex strategies to profit from the situation.
These strategies require some comfort with Cellnex's fundamentals and quality of its business model. Below, I discuss Cellnex's fundamentals and provide evidence that indicates Cellnex is a very strong business. In fact, it is a unique investment proposition due to its strategy, competitive position and growth prospects. 
This insight can be also be seen as a Bottom-Up investment case for Cellnex.

Cellnex (CLNX SM): Fundamental Briefing for Those Trading the Current Rights Issue

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Abertis Infraestructuras Sa / Event-Driven

On 13 April 2017, there was news about a potential takeover of <a href="https://www.smartkarma.com/entities/21241" target="_blank" data-smartkarma-citation="entities:21241:1">Abertis Infraestructuras SA (ABE SM)</a>.On 18 April 2017, Abertis announced that <a href="https://www.smartkarma.com/entities/21157" target="_blank" data-smartkarma-citation="entities:21157:1">Atlantia SpA (ATL IM)</a> had expressed its interest in assessing a potential corporate transaction, the terms of which were unspecified at the time (<a href="https://www.abertis.com/media/relevants_facts/2017/04/18/RF%20CNMV%20ATL%20vs.%20def.pdf" target="_blank">link</a> to Abertis response).Close to a month later, 15 May 2017, Atlantia officially launched an offer for Abertis at EUR 16.50 per Abertis share with an option for a partial share alternative.In this insight, we take a look at the EUR 15 bn transaction...more below the fold.

On 13 April 2017, there was news about a potential takeover of Abertis Infraestructuras SA (ABE SM).On 18 April 2017, Abertis announced that Atlantia SpA (ATL IM) had expressed its interest in assessing a potential corporate transaction, the terms of which were unspecified at the time (link to Abertis response).Close to a month later, 15 May 2017, Atlantia officially launched an offer for Abertis at EUR 16.50 per Abertis share with an option for a partial share alternative.In this insight, we take a look at the EUR 15 bn transaction...more below the fold. 

Abertis / Atlantia - Revisiting a Merger Blocked a Decade Ago

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New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

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After the disappointment of a failed merger in the UK, <a href="https://www.smartkarma.com/entities/132" target="_blank" data-smartkarma-citation="entities:132:1">CK Hutchison</a> and <a href="https://www.smartkarma.com/entities/14026" target="_blank" data-smartkarma-citation="entities:14026:1">VimpelCom</a>'s Wind subsidiary have been desperate to get a deal approved to merge in Italy. Arguably, there is even stronger motivation than in the UK as both face greater challenges as independent companies in Italy.  Hutchison is currently OpFCF negative in Italy and Wind has a heavy debt burden.  In the past week, <a href="https://www.smartkarma.com/entities/21486" target="_blank" data-smartkarma-citation="entities:21486:1">Iliad</a> has signed an agreement with CK Hutchison and VimpelCom to enter the Italian market as a prospective MNO…

After the disappointment of a failed merger in the UK, CK Hutchison and VimpelCom's Wind subsidiary have been desperate to get a deal approved to merge in Italy. Arguably, there is even stronger motivation than in the UK as both face greater challenges as independent companies in Italy.  Hutchison is currently OpFCF negative in Italy and Wind has a heavy debt burden.  In the past week, Iliad has signed an agreement with CK Hutchison and VimpelCom to enter the Italian market as a prospective MNO…

CK Hutchison. More Luck with Consolidation Plans in Italy?

Equity Bottom-Up

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in the UK and the EU in recent days suggest we face a period of real uncertainty ahead. That said, as the fallout continues it is worth looking for investment opportunities.  We continue to review the market for dislocations in the telecoms sector as we believe a lot of the near-term movements have been predominantly driven by fund flow/ liquidity and…

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in the UK and the EU in recent days suggest we face a period of real uncertainty ahead. That said, as the fallout continues it is worth looking for investment opportunities.  We continue to review the market for dislocations in the telecoms sector as we believe a lot of the near-term movements have been predominantly driven by fund flow/ liquidity and…

Post Brexit Fallout Continues: Looking for Opportunities in European Telcos?

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Herfindahl index may provide clues to which deals are approved; regardless of outcomes, we prefer Telefonica.<ul><li class="p1">While the EU regulator's non-approval of Telenor's and TeliaSonera's proposed merger of their Danish operations increases the risk that wireless consolidation to three operators from four will be frowned upon, we don't think all future deals are dead.</li><li class="p1">Looking at the previously approved deals in Austria, Ireland, and Germany with an overlay of the Herfindahl index provides insight into the potential approval of the currently proposed deals in the United Kingdom, Italy, and France.</li></ul>Analyst: Allan Nichols

Herfindahl index may provide clues to which deals are approved; regardless of outcomes, we prefer Telefonica.While the EU regulator's non-approval of Telenor's and TeliaSonera's proposed merger of their Danish operations increases the risk that wireless consolidation to three operators from four will be frowned upon, we don't think all future deals are dead.Looking at the previously approved deals in Austria, Ireland, and Germany with an overlay of the Herfindahl index provides insight into the potential approval of the currently proposed deals in the United Kingdom, Italy, and France.Analyst: Allan Nichols

EU Regulatory Changes Make Telecom M&A More Difficult

Spain

Cellnex Telecom S.A.U. is an independent operator of wireless telecommunications infrastructure and broadcast infrastructure. The Company's sites are located in Spain and Italy.

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Cellnex Telecom Sau (CLNX SM)

Cellnex (CLNX SM): Fundamental Briefing for Those Trading the Current Rights Issue

On 8 October, Cellnex Telecom Sau (CLNX SM) announced a major acquisition and also announced a rights issue with a dilution of c. 22.5% and...

Patryk Basiewicz

Abertis / Atlantia - Revisiting a Merger Blocked a Decade Ago

On 13 April 2017, there was news about a potential takeover of Abertis Infraestructuras SA (ABE SM).On 18 April 2017, Abertis announced that...

Crispin Francis

CK Hutchison. More Luck with Consolidation Plans in Italy?

After the disappointment of a failed merger in the UK, CK Hutchison and VimpelCom's Wind subsidiary have been desperate to get a deal approved to...

New Street Research

Post Brexit Fallout Continues: Looking for Opportunities in European Telcos?

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in...

New Street Research

EU Regulatory Changes Make Telecom M&A More Difficult

Herfindahl index may provide clues to which deals are approved; regardless of outcomes, we prefer Telefonica. While the EU regulator's non-approval...

Morningstar, Inc.

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