Meggitt (MGGT.L), mcap=£6bn, price £7.73 vs £7.72

Pitch: Mid-cap merger arbitrage with a 3.5% spread or 11% expected IRR. Meggitt to be acquired at £8/share by PH. Closing is expected in Aug’22. Shareholder approval was received and most of the regulatory approvals also in the pocket. Approval by UK antitrust watchdog is still pending.

Valuation: MGGT.L pre-announcement price stands at £4.5, but the downside in case of the deal break might be smaller as European-based defense firms have surged since then due to the war in Ukraine.

Exp. gain: +3.5% or 11% IRR in 2-3 months.

Full MGGT.L write-up (free guest account required):

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