Former Point72 Asset Management trader David Rosen has emerged as one of the biggest winners from the bidding war for Middle East credit card processor Network International Holdings Plc.
(Bloomberg) — Former Point72 Asset Management trader David Rosen has emerged as one of the biggest winners from the bidding war for Middle East credit card processor Network International Holdings Plc.
Rosen’s hedge fund Rubric Capital Management revealed in mid-March it was one of Network’s top holders with a 5% interest. News of takeover approaches came out weeks later, driving the London-listed firm’s market value up to £2.1 billion ($2.6 billion) as a buyout consortium backed by CVC Capital Partners started battling it out with Canadian giant Brookfield Asset Management Ltd.
That was a boon for New York-based Rubric, which had a position in Network for years before the public disclosure, according to people with knowledge of the matter. Shares of Network, which closed at 248 pence on the day Rubric crossed the disclosure threshold, have since jumped about 60% through this past Friday’s close as they approached the potential Brookfield bid of 400 pence per share.
Rubric sold amid the rally, offloading its position at prices ranging from 300 pence to 399 pence and had exited its investment by the end of last week, according to a series of regulatory filings.
Private equity firms have started scouring the public markets for bargains again, with more than $10 billion of potential takeover deals emerging in London in recent weeks. EQT AB said earlier this month it’s in talks to buy Dechra Pharmaceuticals Plc for £4.6 billion. Engineering firm John Wood Group Plc, smart meter provider Sureserve Group Plc, telemedicine company Medica Group Plc and urban warehouse owner Industrials REIT Ltd. have also received bids.
Rubric uses a deep value strategy and manages about $2 billion of assets. Its interest in Network was valued at nearly £69 million when it was first disclosed in March, a time when the stock was trading more than 40% below its 2019 IPO price. Network’s shares peaked in February 2020 and have been languishing since.
Rosen previously worked at Steve Cohen’s Point72 and its predecessor, SAC Capital Advisors, first as a money manager and then as head of a multistrategy unit. He began his career at Blackstone Inc., where he worked on restructurings and reorganizations, and later at Green River Management.
Other hedge funds have been piling into Network more recently. TIG Advisors LLC, known for its bets on deal targets, has been building up its stake and now holds a 2.9% interest, according to London filings. Simon Sadler’s Hong Kong-based Segantii Capital Management has a 1.2% position, while Tudor Investment Corp. holds roughly 1%.
Representatives for Rubric and Network declined to comment.
–With assistance from Nishant Kumar.
(Updates with latest TIG interest from Tuesday filing in penultimate paragraph.)
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