×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Merger Arbitrage Mondays – March 27, 2017

  • March 27, 2017

Merger activity was muted last week as there were no new deals announced. Three pending deals closed and we have a bunch of updates related to active deals. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 201745
Total Number of Deals Not Completed in 20172
Total Number of Pending Deals
Cash Deals48
Stock Deals19
Stock & Cash Deals11
Special Conditions5
Total Number of Pending Deals83
Total Deal Size$664.71 billion


Deal Updates:

  1. On March 20, 2017, KongZhong Corporation (KZ) announced that, at an extraordinary general meeting, the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger.
  2. On March 20, 2017, MoneyGram (MGI) announced that its board of directors, after consultation with its outside legal and financial advisors, has determined that the unsolicited proposal received on March 14, 2017 from Euronet Worldwide (EEFT) to acquire all of the outstanding shares of MoneyGram Common Stock and Preferred Stock for $15.20 per share in cash on an as-converted basis could reasonably be expected to result in a “Company Superior Proposal” as defined in MoneyGram’s merger agreement with Ant Financial Services Group.
  3. On March 21, 2017, The Sherwin-Williams Company (SHW) and The Valspar Corporation (VAL) announced that they have extended the termination date of the definitive agreement under which Sherwin-Williams will acquire Valspar for $113 per share in an all-cash transaction, from March 21, 2017 to June 21, 2017.
  4. On March 21, 2017, Pacific Premier Bancorp (PPBI) announced that it has received the required regulatory approvals from the Board of Governors of the Federal Reserve System and the California Department of Business Oversight for its acquisition of Heritage Oaks Bancorp (HEOP). Pacific Premier expects that the Heritage Oaks acquisition will close late in the first quarter or early in the second quarter of 2017.
  5. On March 22, 2017, Allied World Assurance Company Holdings (AWH) announced that its shareholders have approved both of the proposals that were voted on at the company’s special shareholder meeting held in connection with the previously announced merger transaction with Fairfax Financial Holdings Limited.
  6. On March 24, 2017, Western Refining (WNR) announced that WNR stockholders have approved the proposed acquisition of Western Refining by Tesoro Corporation (TSO).
  7. On March 24, 2017, Canyon Bridge Capital Partners, the China-backed buyout fund that agreed to acquire Lattice Semiconductor (LSCC) in November for $1.3 billion, has resubmitted the deal for U.S. government review.
  8. On March 24, 2017, Energy Transfer Partners (ETP) announced that it is holding a special meeting of its common unitholders on April 26, 2017, to obtain the vote of its common unitholders to adopt the merger agreement and the transactions contemplated thereby.
  9. On March 26, 2017, MoneyGram (MGI) announced that it has entered into an Acceptable Confidentiality Agreement with Euronet Worldwide (EEFT) so that it can further consider Euronet’s unsolicited proposal made on March 14, 2017 to acquire all of the outstanding shares of MoneyGram Common Stock and Preferred Stock for $15.20 per share in cash on an as-converted basis.

Closed Deals:

  1. The acquisition of G&K Services (GK) by Cintas Corporation (CTAS) on March 21, 2017. It took 217 days for this deal to be completed.
  2. The acquisition of Cynosure (CYNO) by Hologic (HOLX) on March 22, 2017. It took 36 days for this deal to be completed.
  3. The acquisition of Surgical Care Affiliates (SCAI) by UnitedHealth Group (UNH) on March 24, 2017. It took 74 days for this deal to be completed.

Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnualized
Profit
ALR02/01/2016Abbott Laboratories (ABT)$56.00$39.1303/31/201743.11%3934.03%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$6.50$4.5707/31/201742.23%122.34%
CAB10/03/2016Bass Pro Shops (N/A)$65.50$46.3506/30/201741.32%158.74%
GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)$5.43$3.9306/30/201738.17%146.65%
ADGE11/02/2016Tecogen Inc. (TGEN)$0.34$0.2906/30/201718.33%70.43%
LSCC11/03/2016Canyon Bridge Capital Partners, Inc. (N/A)$8.30$7.0403/31/201717.90%1633.17%
MON09/14/2016Bayer AG (BAYRY)$128.00$113.6712/31/201712.61%16.49%
WR05/31/2016Great Plains Energy Incorporated (GXP)$60.00$54.3306/30/201710.44%40.10%
TWX10/22/2016AT&T, Inc. (T)$107.50$97.5112/31/201710.25%13.40%
AMFW03/13/2017John Wood Group Plc (WG.L)$7.11$6.5012/31/20179.35%12.23%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

Disclaimer: I hold positions in WhiteWave Foods (WWAV), Rite Aid (RAD), Syngenta (SYT) and Fortress Investment Group (FIG). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria