December 19, 2018 | Consumer Discretionary | Europe | Ended
A definitive offer for Amer Sports came on 7-Dec-18 from a widened and stronger Anta-led consortium after further due diligence and negotiations with lenders. Trusting the legitimacy of the Helsinki Takeover Code and the rationality of the Committee on Foreign Investment in the US (CFIUS), funds may have increased confidence that the firm deal can succeed with few issues. In this report, we explore the stability of the Finnish Securities Markets Act’s Helsinki Takeover Code, and the enforceability of debt financing agreements for a case where, for example, Anta runs into capital raising problems stemming from previously-reported accusations that the Junjuan City-based company has “fraud-like” traits. Separately, we study the impact of CFIUS on this deal – the market is only pricing in minimal CFIUS risk, but this is a hurdle that should not be overlooked.
Contents 1. CFIUS’ Recent Scrutiny of Chinese Investments in US Companies 2. US National Security Issues in an Amer Takeover 3. Financing Concerns, the Enforceability of the Helsinki Takeover Code 4. Amer Break Price Analysis 5. Risk Arbitrage Trading Thoughts 6. Deal Structure and Strategic Rationale Appendix A. Amer Sports Business Overview (42 pages)
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