ISPR conversion:
* 1.04 ISPR for each ISP.
* Dividends likely to be paid before deal finalizes
Press release
* Requirements:
- Approval by ISPR and ISP shareholders at a special meeting to take place on 27 April 2018
- Authorisation of ECB to amend the articles of association of ISP
- Conversion will most likely happen after dividend payment for ISP and ISPR, ie after 21 May 2018 (according to press release)
- Right to recesso for ISPR shareholders who do not participate in the vote on 27 April at 2.74 Euros and up to 400mE total amount so up to 15.3% of ISPR holders can chose the recesso (10% below current levels)
Our view:
* Risk arb: spread becoming a risk arb trade with an end around end of H1/17 probably. Decent optionality with the recesso, especially in these markets, should ISPR fall below 2.74E