>>> Tikehau Capital acquires ACE Management at EUR 6.5m EV

Tikehau Capital acquires ACE Management at EUR 6.5m EV
24 OCT 2018
Tikehau Capital [EPA:TKO], the listed French alternative investment and asset management group, announces the acquisition of ACE Management, an asset management company, and, with this, the appointment of Marwan Lahoud to strengthen its Tikehau’s private equity business with a strong sector expertise.
Tikehau Capital continues its policy for growth with the 100% acquisition of ACE Management. The acquisition of a specialist in the aerospace, defence and cybersecurity sector, further supports Tikehau Capital’s momentum of strengthening its private equity expertise. ACE Management will provide Tikehau Capital with a new range of specialist funds, complementing Tikehau’s generalist funds focusing on growth equity, alongside the specialist energy sector and special situations funds already managed by the group.
The price paid for the acquisition of ACE Management will be based on an enterprise value of EUR 6.5m. Up to 30% of the consideration for the acquisition will be paid in the form of newly-issued Tikehau Capital shares in connection with a contribution in kind, with the balance to be paid in cash. The contribution in kind will lead to the issuance of up to 104,231 new Tikehau Capital shares.
The deal is expected to close before the end of 2018 and is subject to approval from the French Autorite des marches financiers (as a result of the change of ownership of the management company) and the relevant competition authorities.
In accordance with applicable regulations, Tikehau Capital will inform the market of the effective completion of the transaction and will provide the terms of the contribution in kind.
Marwan Lahoud, who has held several leading roles in the aeronautic sector, is joining Tikehau Capital and will take over as chairman of ACE Management’s supervisory board. His international experience and his sector expertise will be key assets to support Tikehau Capital’s and ACE Management’s ambitions.
ACE Management is an asset investment management company which has specialised in capital investment in the innovation and industrial sectors over the past 20 years. ACE Management’s investors are primarily major international groups, operating across the aerospace and defence industries. The company manages three main categories of funds on behalf of its clients, representing close to EUR 440m of assets under management: Aerofund (aerospace), Brienne (defence and security) and Atalaya (maritime).
Further to the acquisition of 100% of ACE Management’s capital, Tikehau Capital will participate to the launch of a new generation of funds managed by ACE Management, including cybersecurity focused fund Brienne III, maritime specialist fund Atalaya II and Elara, a fund investing in cutting-edge production units.
Tikehau Capital co-founder Antoine Flamarion said: "With this acquisition, we are pursuing the implementation of our strategy, by accelerating our development in the private equity industry, and establishing our expertise in a buoyant sector. ACE Management’s sector-based approach is highly complementary to Tikehau Capital’s business know-how."
Marwan Lahoud added: "I am drawn by Tikehau Capital’s company spirit, the ambition and creativity of its teams, and I am honoured to be able to contribute to the group’s development, particularly the private equity business. ACE Management is a leading manager in its sector and will be able to launch a new expansion phase thanks to the support from Tikehau Capital."
ACE Management Chairman of the management Board Thierry Letailleur declared: "We are delighted by the deal with Tikehau Capital which will strengthen our position in the private equity market and enable us to attract new investors into our entrepreneurial adventure which began 20 years ago. Transactions so far this year have once again demonstrated the relevance and robustness of ACE Management’s sector-based funds model, which continues to remain focused on both the industry sector and innovation."
ACE Management has been particularly active over the past six months, supporting the aerospace surface-treatment chemical products group Socomore in its external growth strategy. The company was also involved in the capital restructuring of the aeronautic equipment supplier Rafaut and the capital restructuring of aeronautic equipment supply company Duqueine.

(Kepler-Cheuvreux) Croiss Asser Research : October is the cruellest Month

October is the cruellest month

The change in the investment environment has begun to affect US equity substantially. The defensive bias has emerged on Wall Street. The locus of risk in developed equity is shifting from the value style to growth and from
large caps to small.
We maintain the view that dangerous October will be followed by a yearend rally through November and December. The equity bull market in America is not dead yet.
We remove our sizable UW in Europe’s unloved Banks and reduce the scale of our super-OW position in the twin defensives of Healthcare and Consumer Staples. Our move is a form of profit-taking. For what remains of this year we do not think we need to be quite so defensive.

>>> What to look at today - 24th of October 2018

Asian stocks gyrated alongside U.S. futures as Chinese shares pared gains and investors continued to harbor concerns about the corporate earnings outlook in an environment of tightening financial conditions. Treasuries edged higher and the dollar steadied.
A turnaround in China’s markets that initially lifted shares in the rest of Asia and kept the MSCI Asia Pacific Index from tipping into a bear market ran out of steam. Benchmarks rose in Japan and came off their highs in China and Hong Kong, while U.S. equity futures resumed a slide. European futures rose, reflecting a late-day rally that lifted U.S. shares off their lows Tuesday. Oil fell to a two-month low on a pledge by Saudi Arabia to meet any shortfall that materializes from Iranian sanctions. Treasuries ticked higher though yields remained above Tuesday’s low.
MANH / RRC +5%, TER +4% are higher, while NDLS -14%, MKSI -10%, IRBT -8%, TXN -6%, EW -3% are lower following earnings/guidance

Nikkei +0.37% Hang Seng +0.04% CSI +0.36% shanghai +0.51% Shenzen -0.12%

Eur$ 1.1463 CNH 6.9429 CNY 6.9378 JPY 112.48 GBP 1.2975 RUB 65.54 CHf 0.9951 TRY 5.7557 WTI$ 66.53 +0.15%

S&P -0.48% EuroStoxx +0.45% FTSE +0.42% Dax +0.51% SMI +0.34%

Macro :
- Oil Tumbles 5% as Saudis Pledge to Produce as Much as They Can
- U.K. Cabinet Is Said to Be at War Over Theresa May’s Brexit Plan
- Italy Banks Need Capital Hike If Spread Nears 400: Giorgetti
- Spain Assets’ Italian Flu to Fade as Growth Prevails: Macro View

Keep an eye on :
- ACA LN : Barrick Said to Favor Taking Back Control of Acacia Mining (1)
- AED BB : Aedifica Sets Issue Price Optional Stock Dividend at EU72.25
- AI FP : Air Liquide 3Q Rev. EU5.27B Vs Est. EU5.2B; Keeps Profit Target
- AKSO NO : Aker Solutions 3Q Adjusted Ebitda Beats Highest Est.
- ALO FP : EU Regulators to Warn Siemens, Alstom Over Rail Deal: Reuters
- AXP US : AmEx Says DOJ, Regulators Probing Foreign-Exchange Business
- AAPL US : Apple to Launch TV Subscription Service Globally: Information
- APR FP : April Says 9-MO Performance Remains in Line W/ Views
- ARCAD NA : Arcadis Third Quarter Organic Revenue +4%
- ANTO LN : Antofagasta Narrows Full-Year Copper Production Guidance (1)
- ASETEK NO : Asetek Third Quarter Revenue $17.4 Mln
- ATS AV : AT&S Boosts Full Year Ebitda Margin Forecast
- ARYN SW : Aryzta Recommends Holders Vote Favour of Capital Raise
- ATL IM : Atlantia May Consider Separating Autostrade Business: Sole
- CS FP : AXA IM Planning Voluntary Departures Plan: L’Agefi
- AXFO SS : Axfood Third Quarter Operating Profit Misses Lowest Estimate
- CRG IM : Banca Carige Approves Sale of UTP Portfolio to Bain Capital
- BARC LN : Barclays 3Q Markets Rev. Rises to GBP1.16b vs GBP977m Yr Ago (1)
- BPI PL : Banco BPI Has Started the Sale of EU200m NPL Portfolio: Forero
- BPI PL : Banco BPI Holds EU686m of Italian Short-Term Debt, Forero Says
- BB FP : BIC Third Quarter Net Income EU56.8 Mln
- BC IM M Berenberg cites takeover speculation as one reason for adding stock to its "buy" list)
- BOL SS : Boliden 3Q Adjusted Operating Profit 4.7% Below Est.
- CO FP : Rallye Broke Rule to Inflate Casino Valuation, Short Sellers Say
- CPINV BB : Care Property Invest to Redevelop Nijmegen Residence for EU9.2m
- CEVA SW : Ceva Says It Asked More Time to Review DSV Bid Before Withdrawn
- COFB BB : Cofinimmo Buys German Clinic Project for EU22m at ~6% Yield
- CBK GY : Commerzbank Among Bidders for NordLB, Platow Brief Reports
- COOR SS : Coor Third Quarter Net Sales Beat Highest Estimate
- DSY FP : Dassault Systemes Beats 3Q EPS Goal, Raises FY EPS Forecast
- DBK GY : Deutsche Bank 3Q FICC Sales & Trading Rev EU1.32 Bln
- DBK GY : Deutsche Bank Net Revenue EU6.2b vs Estimates of EU6.34b, `ON TRACK' TO POST 2018 PROFIT
- DWS GY : DWS Third Quarter Adjusted Pretax Profit Beats Highest Estimate
- EDEN FP : Edenred Confirms FY Targets; 3Q Rev. EU325M V. Est. EU326M
- EDF FP : French Long-Term Energy Strategy Delayed to November: Reuters
- ELK NO : Elkem Third Quarter Net Income 2.3% Below Estimates
- RF FP : Eurazeo Sells Asmodee to PAI Partners in EU565m Deal
- FAGR BB : JPMorgan Asset Management Cuts Fagron Stake to Less Than 5%
- FCT IM : Naval Group, Fincantieri Alliance Making Progress: Ansa
- FRE GY : Akorn/Fresenius Appeal Hearing in Delaware Court Set for Dec. 5
- GFC FP : Gecina 9-Month Gross Rental Inc. EU495M; Co. Confirms FY Target
- SHBA SS : Handelsbanken Sees Job Reductions of 1,600 by End 2022
- IBE SM : Iberdrola Nine Month Ebitda EU6.7 Bln Vs. EU5.44 Bln Y/Y
- INDEX SS : Index Pharmaceuticals Holding Offering Prices at SEK6.02/Share
- IHG LN : InterContinental Hotels Says FMR Has 5% Position in Co.
- INA PL : Inapa Buys Papyrus Deutschland From Optigroup
- ISP IM : BlackRock Is Said to Cool on Intesa Asset Management Tie-Up
- KER FP : Kering 3Q Beats on Another Stellar Gucci Performance: Jefferies
- KLED SS : Kungsleden 9M Income From Property Management SEK821 Mln
- KCO GY : Kloeckner Third Quarter Ebitda Misses Lowest Estimate
- MAU FP : Maurel to Buy $80 Million Angola Assets Controlled by Mistubishi
- MAP SM : Mapfre, Santalucia Mull Merging Funeral Ops: Reuters (Oct.23)
- MELE BB : Melexis Cuts Full Year Revenue Forecast
- B4B GY : Metro Is Said to Tap Citigroup, JPMorgan for China Review
- NDA SS : Nordea CEO Says He’s ‘Not Satisfied’ With Revenue Development
- NHY NO : Norsk Hydro Third Quarter Underlying Ebit Beats Highest Estimate
- OBEL BB : Orange Belgium Third Quarter Adjusted Ebitda Meets Estimates
- OHL SM : OHL Mandates Lazard for Restructuring Plan: Expansion
- ORSTED DC : Orsted May Be Blocked From Private Equity Fund M&A, JP Says
- POLN SW : Polyphor, FDA in Protocol Pact For Murepavadin Phase III Study
- RAL FP : Rallye Broke Rule to Inflate Casino Valuation, Short Sellers Say
- REC NO : REC Silicon Third Quarter Ebitda Loss $6.1 Mln
- RB/ LN : Reckitt Benckiser Says FX Could Hurt Rev., EPS: Reuters
- RRS LN : Randgold Says ISS/Glass Lewis Recommend Vote in Favour of Merger
- RUI FP : Rubis Offers To Acquire 100% of African Oil Marketer KenolKobil
- RYA ID : Ryanair Summons Crew to Disciplinary Meeting Over Staged Photo
- SAF FP : Safran CEO: LEAP Engine Ramp-up Sustainable, to Continue in 2019
- SPM IM : Saipem Third Quarter Adjusted Net Misses Lowest Estimate
- SCR FP : Scor Third Quarter Net Income Misses Lowest Estimate
- STM FP : STMicroelectronics 3Q Net Income Beats Highest Est.
- TEL NO : Telenor Third Quarter Ebitda Beats Highest Estimate
- TIETO FH : Tieto 3Q Adjusted Operating Profit 3.2% Above Est.
- UPONOR FH : Uponor 3Q Adjusted Operating Profit 3.4% Below Est. (1)
- VAO GY : *VAPIANO RISES 27% ON TRADEGATE VS XETRA; WILL SELL NEW SHARES
- DG FP : Vinci Results Should Reassure, Stem Share Slide: Morgan Stanley
- XXL NO : XXL Third Quarter Ebitda Misses Estimates

>>> US After Hours Summary: MANH / RRC +5%, TER +4% are higher, wh

After Hours Summary: MANH / RRC +5%, TER +4% are higher, while NDLS -14%, MKSI -10%, IRBT -8%, TXN -6%, EW -3% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: MANH +5%, RRC +4.7%, TER +4%, TSS +2.1%, NAVI +2% (light volume), COF +1.3%

Companies trading higher in after hours in reaction to news: CMTA +30.6% (plans to submit New Drug Application for palovarotene for the treatment of FOP based on positive phase 2 results), LIQT +13.6% (schedules investor update call on tomorrow October 24 at 10am ET), SM +3.2% (upgraded to Outperform at Wells Fargo), CMP +2% (following today's 20% move lower on guidance), AKRX +1.9% (to join S&P SmallCap 600; Resideo Technologies will replace Akorn in the S&P MidCap 400), WPG +1.6% (higher on light volume after confirming it continues to see strong demand from big box retailers), KMX +1.3% (approves $2 bln expansion of share repurchase program), HON +1.2% (Honeywell spin-off Resideo Technologies will replace Akorn in the S&P MidCap 400)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NDLS -14.4% (also announces launch of secondary offering of 8.75 mln shares of its Class A common stock by selling stockholders), MKSI -9.7%, IRBT -7.9%, TXN -6%, EW -2.8%, AI -1.6% (ticking lower; also evaluating possible long-term tax structures, including being taxed as REIT as early as Jan 1, 2019), ILMN -1%

Companies trading lower in after hours in reaction to news: IGC -5.5% (ongoing volatility), LOVE -3.8% (files 2.0 mln share common stock offering by selling stockholders), BGFV -3.4% (Akorn will replace Big 5 Sporting Goods in the S&P SmallCap 600), VRRM -3.3% (files for offering of 146,381,878 shares of Class A Common Stock and 6,666,666 warrants to purchase Class A Common Stock by holders), QEP -1.7% (ticking lower; downgraded to Market Perform at Wells Fargo)

Semiconductor names are lower following Texas Instruments (TXN) and MKS (MKSI) earnings results (ETFs SMH -1.6%, SOXX -1.4%): ADI -3.2%, ON -3.2%, NXPI -2.7%, CY -2.5%, AMD -1.6%, XLNX -1.1%, MU -1%, NVDA -1%

>>> Europe : Brokers Upgrades & Downgrades - 24th of October 201

>>> Up
* APRIL Upgraded to Buy at Oddo BHF; PT 16.50 Euros
* Brunello Cucinelli Upgraded to Buy at Berenberg
* Daimler Upgraded to Buy at BofAML
* Kitron Raised to Buy at Norne Securities; Price Target 10 Kroner
* Lundbeck Upgraded to Market Perform at Bernstein
* PGS Upgraded to Overweight at Barclays; Price Target 47 Kroner
* PulteGroup Upgraded to Neutral at BTIG
* Salvatore Ferragamo Raised to Neutral at MainFirst
* Sandvik Upgraded to Buy at Kepler Cheuvreux; PT 191 Kronor
* Valmet Upgraded to Hold at DNB Markets; PT 18.50 Euros
* Wartsila Upgraded to Buy at ABG; PT 16 Euros
* Wartsila Upgraded to Buy at DNB Markets; PT 14.80 Euros
* Whitbread Shares Mispriced, PT Raised to Street High: Berenberg

>>> Down
* AMS Downgraded to Neutral at JPMorgan; PT 45 Francs
* AMS Downgraded to Hold at Liberum
* Bayer Downgraded to Add at AlphaValue
* Cineworld Downgraded to Equal-weight at Barclays; PT 3.05 Pounds
* GAM Holding Downgraded to Neutral at MainFirst; PT 6.50 Francs
* Genmab Downgraded to Hold at Berenberg
* Renault Downgraded to Equal-weight at Barclays; PT 83 Euros
* Repsol Downgraded to Hold at Deutsche Bank

>>> Initiation
* Cerved Group Rated New Hold at Berenberg; PT 9 Euros
* doBank Rated New Buy at Berenberg; PT 12.50 Euros
* EON Reinstated at Goldman With Buy; PT 10.40 Euros
* FNG Rated New Add at Bank Degroof Petercam; PT 31 Euros
* FRoSTA Rated New Neutral at NIBC Bank N.V.; PT 64.50 Euros
* Glaxo Rated New Peer Perform at Wolfe; PT 16.88 Pounds
* Greenyard Rated New Buy at NIBC Bank N.V.; PT 12 Euros
* Lotus Bakeries Rated New Sell at NIBC Bank N.V.; PT 1,600 Euros
* Novartis Rated New Outperform at Wolfe; PT 106 Francs
* Pirelli Rated New Buy at Oddo BHF; PT 7.20 Euros
* Roche Rated New Peer Perform at Wolfe; PT 253 Francs
* RWE Reinstated at Goldman With Buy; PT 22.40 Euros
* Sanofi Rated New Peer Perform at Wolfe; PT 83 Euros
* TER Beke Rated New Buy at NIBC Bank N.V.; PT 172 Euros

>>> Call

>>> US Close Dow -0.50% S&P -0.55% Nasdaq -0.42% Russell -0.84%

Closing Market Summary: S&P 500 Mounts Intraday Comeback Amid Disappointing Earnings, Foreign Developments

The S&P 500 closed Tuesday on stronger footing after tumbling as low as 2.2% in early morning trading. Discouraging price action in foreign markets and some disappointing earnings contributed to early negative sentiment, but the benchmark index gradually recouped intraday losses, finishing lower by 0.6%. There was a prevailing sense that the morning's sell-off had left the market in an oversold condition on a short-term basis.

Meanwhile, the Dow Jones Industrial Average lost 0.5%, the Nasdaq Composite lost 0.4%, and the Russell 2000 lost 0.8%.

Overseas, Asian and European indices closed notably lower on Tuesday with several developments causing concern. For instance, Japan's Nikkei lost 2.7%, as Japan's finance minister said he expects a planned sales tax increase next October to cause some disruptions. In Europe, Germany incited inflationary worries after reporting a 3.2% year-over-year increase in its Producer Price Index, and the EU rejected Italy's budget plan to increase its deficit spending to 2.4% of GDP in 2019. The Euro Stoxx 50 fell 1.5%.

Back on the home front, disappointing earnings reports from Dow components 3M (MMM 192.55, -8.81) and Caterpillar (CAT 118.98, -9.73) heightened worries that earnings growth may have peaked and weighed on the industrial sector, which lost 1.6%. 3M reported lower-than-expected top and bottom lines and also lowered its earnings guidance. Meanwhile, Caterpillar drew attention to higher material and freight costs, including tariffs. Shares of 3M lost 4.4%, and Caterpillar shares fell 7.6%.

Nevertheless, the relative strength in the communication services (+0.4%) and consumer discretionary (-0.1%) sectors provided some support, helping to fuel Tuesday's intraday rebound. Dow component McDonald's (MCD 177.15, +10.52, +6.3%) helped lift the consumer discretionary sector after it reported above-consensus top and bottom lines. Meanwhile, Verizon (VZ 57.21, +2.23, +4.1%) led the communication services sector higher after it reported better-than-expected earnings.

Also in earnings, aircraft manufacturing company United Tech (UTX 130.02, +3.62, +2.9%) reported above-consensus profit and revenue. Similarly, home construction company PulteGroup (PHM 22.40, +1.52, +7.3%) lifted housing stocks after it also surpassed top and bottom line expectations.

The oil-sensitive energy group was the worst-performing sector on Tuesday, losing 2.7%, after Saudi Arabia pledged to play a "responsible role" in the energy markets. Likewise, WTI crude responded, settling 4.2% lower at $66.53/bbl -- its lowest price since August.

In other markets, U.S. Treasuries had surged in the early going amid the equity sell-off, but lost some steam as the market rebounded, pushing yields up from intraday lows. The 10-yr yield finished three basis points lower at 3.17%, but was down as much as eight basis points. Meanwhile, gold, another safe-haven asset, climbed 1.0% to $1,236.80/oz, nearing a three-month high.

Investors did not receive any economic data on Tuesday. Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the FHFA Housing Price Index for August, New Home Sales for September, and the Beige Book for September on Wednesday.

  • Nasdaq Composite +7.7% YTD
  • S&P 500 +2.5% YTD
  • Dow Jones Industrial Average +1.9% YTD
  • Russell 2000 -0.6% YTD