European Event-Driven Analyst

Jesus Rodriguez Aguilar

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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<li>
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.
<ul>
<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

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

The broad global indexes (MSCI ACWI, ACWI ex-US, and EAFE) remain near logical resistance as investors await monetary policy decisions from the ECB and Federal Reserve. Considering overhead resistance and continued mixed economic and market signals, we remain squarely in the neutral camp.  We outline important technical levels across major indexes and highlight attractive opportunities within the Manufacturing, Transportation, and Materials Sectors, most of which hail from Europe and Japan.

The broad global indexes (MSCI ACWI, ACWI ex-US, and EAFE) remain near logical resistance as investors await monetary policy decisions from the ECB and Federal Reserve. Considering overhead resistance and continued mixed economic and market signals, we remain squarely in the neutral camp.  We outline important technical levels across major indexes and highlight attractive opportunities within the Manufacturing, Transportation, and Materials Sectors, most of which hail from Europe and Japan.

Global Equity Strategy: Overhead Resistance Looms

Developed international equities (MSCI EAFE) have been underperforming relative to global equities (MSCI ACWI). However, within EAFE, SMID-caps tell a different story and are a great source of investment ideas within the EAFE region. In today’s report we use a bottom-up approach to highlight actionable charts, sorted by market cap (all buys at current levels).

Developed international equities (MSCI EAFE) have been underperforming relative to global equities (MSCI ACWI). However, within EAFE, SMID-caps tell a different story and are a great source of investment ideas within the EAFE region. In today’s report we use a bottom-up approach to highlight actionable charts, sorted by market cap (all buys at current levels).

Public Relations and Social Media Manager, Dechert LLP

Peggy Heffner

Public Relations and Social Media Manager

Dechert is a global specialist law firm

Dechert LLP

Dechert is a global specialist law firm.
Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters.

Our work is widely recognized. We have 20 standout practices noted by Chambers Global, including global-wide rankings for arbitration, corporate investigations, anti-corruption, investment funds and life sciences. Named Antitrust Team of the Year, Chambers USA commends our “accomplished group” as “routinely sought after to handle some of the most significant litigation and transactions in the antitrust world.” 

In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We developed a first-of-its kind legal project management department, which uses technology, people and processes to drive efficiency and deliver value for our clients.

We are innovators. Dechert ranked #7 in the Financial Times’ Top North American Innovative Law Firms. Financial Times also recognizes us among the Top European Innovative Law Firms and highly commends World Compass, our marketing compliance service, which offers investment firms advice in more than 100 jurisdictions.

Fast Facts<ul><li>Significant merger investigations lasted an average of 9.9 months in 2016, a new DAMITT record.</li><li>The 33 significant investigations in 2016 were the second most in the past six years, but down from the record of 37 significant investigations set in 2015.</li><li>The six complaints filed in 2016 to enjoin transactions were the second most in the past six years, just below the 2015 record of seven complaints.</li><li>Merger cases filed in 2016 suggest that merger litigation takes about eight months—more than three months longer than litigated cases filed in 2015 and more than four months longer than litigated cases filed in 2011.</li><li>Transaction agreements resulting in significant antirust merger investigations resolved in 2016 allotted 15.7 months for antitrust review, up 10% from 2015.</li></ul>

Fast FactsSignificant merger investigations lasted an average of 9.9 months in 2016, a new DAMITT record.The 33 significant investigations in 2016 were the second most in the past six years, but down from the record of 37 significant investigations set in 2015.The six complaints filed in 2016 to enjoin transactions were the second most in the past six years, just below the 2015 record of seven complaints.Merger cases filed in 2016 suggest that merger litigation takes about eight months—more than three months longer than litigated cases filed in 2015 and more than four months longer than litigated cases filed in 2011.Transaction agreements resulting in significant antirust merger investigations resolved in 2016 allotted 15.7 months for antitrust review, up 10% from 2015.

DAMITT 2016 Year in Review: Significant Antitrust Merger Investigations Longer Than Ever

United Kingdom

Signature Aviation Limited provides air transport support services. The Company offers fueling, ground handling, passenger pilot, line maintenance, and technical support services, as well as aftermarket facilities such as manufacturing of aircraft equipment. Signature Aviation serves customers worldwide.

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Signature Aviation (SIG LN)

Signature Aviation - PE Consortium Agreed Offer

The deal is highly likely to close. As of 15 February intra-day trading, gross USD adjusted spread was -0.48%, therefore it would be wise to stay...

Jesus Rodriguez Aguilar

Global Equity Strategy: Overhead Resistance Looms

The broad global indexes (MSCI ACWI, ACWI ex-US, and EAFE) remain near logical resistance as investors await monetary policy decisions from the ECB...

Vermilion Research

Focus on Outperforming EAFE SMID-Caps

Developed international equities (MSCI EAFE) have been underperforming relative to global equities (MSCI ACWI). However, within EAFE, SMID-caps...

Vermilion Research

DAMITT 2016 Year in Review: Significant Antitrust Merger Investigations Longer Than Ever

Fast Facts Significant merger investigations lasted an average of 9.9 months in 2016, a new DAMITT record. The 33 significant investigations in...

Dechert LLP

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