European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

On 19 April, Siris Capital Group, LLC (Siris) <a href="https://otp.tools.investis.com/clients/uk/equiniti1/rns/regulatory-story.aspx?cid=1241&amp;newsid=1469856" target="_blank" rel="noopener">confirmed that it had submitted a non-binding proposal</a> to acquire <a href="https://www.smartkarma.com/entities/equiniti-group-plc" target="_blank" data-smartkarma-citation="entities:21919:1" rel="noopener">Equiniti (EQN LN)</a> for 170p per share.
Equiniti Group plc said it had noted media speculation and the subsequent announcement by Siris and <a href="https://otp.tools.investis.com/clients/uk/equiniti1/rns/regulatory-story.aspx?cid=1241&amp;newsid=1469882" target="_blank" rel="noopener">confirmed</a> that it had received a "highly conditional non-binding proposal" from Siris.
<ul>
<li>Equiniti urged its shareholders to take no action on the offer, while it assesses it together with its financial and legal advisers. Equiniti added it will make a further announcement "in due course".</li>
<li>Paul Lynam has been appointed as Chief Executive of EQ with effect from 1 April 2021.  Paul has initiated a thorough strategic review of the business and will announce the conclusions of this review no later than 29 July 2021, the proposed date of EQ's 2021 interim results.</li>
</ul>
Put up or shut up deadline is 5.00 p.m. (London time) on 17 May 2021.
The consideration represents a premium of 22.8% to the 1-month VWAP, and 23.5% to the day prior to the statement release. It also represents 2.1x EV/Fwd revenue, 9.9x EV/Fwd EBITDA and 16.0x Fwd P/E.
Putting Equiniti on a blended 11x EV/Fwd EBITDA and 17.1x Fwd P/E, the implied valuation is 185p per share. On this basis, the approach by Siris could be considered an opening gambit, which leaves some margin to raise the offer.
Equiniti closed at 163p on 20 April, therefore the gross spread to the offer price is 4.1%.
Recommendation is long EQN LN (TP 185p).
Equiniti is the latest of a string of UK listed companies to attract private equity interest, with British equities still regarded as cheap by many analysts.

On 19 April, Siris Capital Group, LLC (Siris) confirmed that it had submitted a non-binding proposal to acquire Equiniti (EQN LN) for 170p per share.
Equiniti Group plc said it had noted media speculation and the subsequent announcement by Siris and confirmed that it had received a "highly conditional non-binding proposal" from Siris.

Equiniti urged its shareholders to take no action on the offer, while it assesses it together with its financial and legal advisers. Equiniti added it will make a further announcement "in due course".
Paul Lynam has been appointed as Chief Executive of EQ with effect from 1 April 2021.  Paul has initiated a thorough strategic review of the business and will announce the conclusions of this review no later than 29 July 2021, the proposed date of EQ's 2021 interim results.

Put up or shut up deadline is 5.00 p.m. (London time) on 17 May 2021.
The consideration represents a premium of 22.8% to the 1-month VWAP, and 23.5% to the day prior to the statement release. It also represents 2.1x EV/Fwd revenue, 9.9x EV/Fwd EBITDA and 16.0x Fwd P/E.
Putting Equiniti on a blended 11x EV/Fwd EBITDA and 17.1x Fwd P/E, the implied valuation is 185p per share. On this basis, the approach by Siris could be considered an opening gambit, which leaves some margin to raise the offer.
Equiniti closed at 163p on 20 April, therefore the gross spread to the offer price is 4.1%.
Recommendation is long EQN LN (TP 185p).
Equiniti is the latest of a string of UK listed companies to attract private equity interest, with British equities still regarded as cheap by many analysts.

Siris Capital/Equiniti: Non-Binding Proposal

United Kingdom

Equiniti Group PLC provides administration and payment services supported by technology platforms. The Company also provides share registration and associated investor services, administration of employee share plans, pension administration and software, and employee benefit schemes. Equiniti Group serves a wide range of organizations in the UK.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Siris Capital/Equiniti: Non-Binding Proposal

The approach by Siris should be considered an opening gambit, which leaves some margin to raise the offer. Gross spread is 4.1%. Long EQN LN (TP...

Jesus Rodriguez Aguilar