February 06, 2025 11:01 GMT
CONSUMER CYCLICALS: Ceconomy; JD.com reportedly showing interest in buying (x3)
CONSUMER CYCLICALS
(CECGR unsec; NR/BB-/BB) (JD; A3/A-)
- Equities closed +13% but are only pricing +9% today. On a ~30% takeover premium <1/3 chance.
- €29/26s closed +2/+1pts pricing ~50% chance there (+2/+0.9pt upside remaining).
Not first time JD has shown interest, 29s are coming in from well wide levels - low levered co but razor thin margins, weak cash flow metrics and full European consumer exposure. Trigger piece here.
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