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.

Otis/Zardoya Otis: Possibility of a Sweetened Offer

Otis/Zardoya Otis: Lifting the Minorities

Event-Driven

<ul>
<li>Otis Worldwide Corporation (50.018% stake in Zardoya Otis) has improved the offer to €7.14/share (cum dividend) and has obtained an irrevocable undertaking from EuroSyns (11.19%) to tender its shares.</li>
<li>The offered price represents a 33.5% premium to the closing price prior to announcement. It assumes implicit multiples of 22.0x P/22e E and and <strong>14.0x EV/22e EBITDA</strong> (Capital IQ consensus).</li>
<li>Gross spread is 0.4%. The sweetened offer is not generous to say the least, but the second largest shareholder has accepted; there's virtually no interloper risk. <strong>Long ZOT SM and tender</strong>.</li>
</ul>


Otis Worldwide Corporation (50.018% stake in Zardoya Otis) has improved the offer to €7.14/share (cum dividend) and has obtained an irrevocable undertaking from EuroSyns (11.19%) to tender its shares.
The offered price represents a 33.5% premium to the closing price prior to announcement. It assumes implicit multiples of 22.0x P/22e E and and 14.0x EV/22e EBITDA (Capital IQ consensus).
Gross spread is 0.4%. The sweetened offer is not generous to say the least, but the second largest shareholder has accepted; there's virtually no interloper risk. Long ZOT SM and tender.


Zardoya Otis SA

Otis/Zardoya Otis: Sweetened Offer