Merger Arbitrage Mondays – April 3, 2017

Merger activity increased last week with six new deals announced and four deals closing. 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 2017 49
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 49
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 6
Total Number of Pending Deals 85
Total Deal Size $666.81 billion

New Deals:

  1. The acquisition of Norsat International (NSAT) by Hytera Project for $62 million or $10.25 per share in cash.
  2. The acquisition of Stonegate Bank (SGBK) by Home Bancshares (HOMB) for $778.4 million or $49 per share in cash.
  3. The acquisition of Exeter Resource Corporation (XRA) by Goldcorp (GG) for $184.45 million in an all stock deal. Under the terms of the agreement, shareholders of Exeter Resource Corporation will receive 0.12 of a Goldcorp share for each Exeter share.
  4. The acquisition of Exar Corporation (EXAR) by MaxLinear (MXL) for $472 million or $13.00 per share in cash.
  5. The acquisition of Empire Resources (ERS) by a unit of Ta Chen Stainless Pipe for $160.57 million or $7.00 per share in cash.
  6. The acquisition of TRC Companies (TRR) by New Mountain Capital for $438 million or $17.55 per share in cash.

Deal Updates:

  1. On March 28, 2017, MoneyGram (MGI) and Ant Financial Services Group announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired with respect to the definitive agreement under which MoneyGram will merge with Ant Financial.
  2. On March 28, 2017, FairPoint Communications (FRP) shareholders voted to adopt the merger agreement between FairPoint and Consolidated Communications Holdings (CNSL) during a special meeting.
  3. On March 29, 2017, Heritage Oaks Bancorp  (HEOP) announced, that at the Company’s special meeting of shareholders, the shareholders of the Company approved the Company’s merger with and into Pacific Premier Bancorp (PPBI), with PPBI surviving the merger. Subject to customary closing conditions, the merger of the Company with and into PPBI currently is expected to be consummated effective as of April 1, 2017.
  4. On March 30, 2017, PrivateBancorp (PVTB) and Canadian Imperial Bank of Commerce (CM) announced that they have entered into an amended merger agreement. Under the Amended Agreement, PrivateBancorp stockholders will receive, upon completion of the proposed merger with CIBC, US$24.20 in cash and 0.4176 of a CIBC common share for each share of common stock of PrivateBancorp held. The Amended Agreement values PrivateBancorp at approximately US$4.9 billion. The companies currently expect to close the transaction in the second calendar quarter of 2017. PrivateBancorp has set March 31, 2017 as the new record date for its special meeting of stockholders to consider and act upon the revised merger agreement.
  5. On March 30, 2017, Walgreens (WBA) made a risky move to win regulatory approval for its $9.7 billion merger with Rite Aid (RAD). Walgreen has set a deadline of roughly three months for the FTC to either block the merger or let it go forward.
  6. On March 31, 2017, Danone agreed to sell the Stonyfield organic yogurt brand to win approval from U.S. antitrust authorities for its $10 billion acquisition of soy-milk maker WhiteWave Foods (WWAV).

Closed Deals:

  1. The acquisition of Popeyes Louisiana Kitchen (PLKI) by Restaurant Brands International (QSR) on March 27, 2017. It took 34 days for this deal to be completed.
  2. The acquisition of Endurance Specialty Holdings (ENH) by SOMPO Holdings on March 28, 2017. It took 174 days for this deal to be completed.
  3. The acquisition of Mentor Graphics (MENT) by Siemens AG on March 30, 2017. It took 136 days for this deal to be completed.
  4. The acquisition of Heritage Oaks Bancorp (HEOP) by Pacific Premier Bancorp (PPBI) on March 31, 2017. It took 108 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $4.25 07/31/2017 52.94% 162.38%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.73 03/31/2017 40.95% -4982.42%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.12 06/30/2017 31.80% 131.88%
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $53.11 06/30/2017 23.33% 96.76%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.92 03/31/2017 19.94% -2426.30%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.35 $0.3051 06/30/2017 14.28% 59.25%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $113.20 12/31/2017 13.07% 17.54%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $54.27 06/30/2017 10.56% 43.79%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $97.71 12/31/2017 10.02% 13.45%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $52.95 $48.70 06/30/2017 8.72% 36.16%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $4.25 37,069,092 07/31/2017 52.94% 162.38%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.73 389,562 03/31/2017 40.95% 0.00%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.12 7,187,644 06/30/2017 31.80% 131.88%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $53.11 1,241,040 06/30/2017 23.33% 96.76%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.92 644,287 03/31/2017 19.94% 0.00%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.35 $0.3051 21,549 06/30/2017 14.28% 59.25%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $113.20 2,300,260 12/31/2017 13.07% 17.54%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.27 713,934 06/30/2017 10.56% 43.79%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $97.71 3,502,557 12/31/2017 10.02% 13.45%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $52.95 $48.70 11,533 06/30/2017 8.72% 36.16%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $7.15 $6.59 101,003 12/31/2017 8.47% 11.36%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.53 223,271 06/30/2018 6.93% 5.58%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $103.50 3,326,779 12/31/2017 6.28% 8.43%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.80 1,356,341 12/31/2017 6.25% 8.39%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $88.50 394,647 04/28/2017 6.16% 89.91%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $60.17 $57.22 1,785,674 09/30/2017 5.16% 10.46%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.27 1,381,288 06/30/2017 4.23% 17.53%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $47.09 238,807 12/31/2017 4.06% 5.44%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $34.01 $32.75 342,828 12/31/2017 3.84% 5.15%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.05 $3.90 259,727 09/30/2017 3.81% 7.73%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $61.40 4,903,071 12/31/2017 3.49% 4.68%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.48 1,328,654 06/30/2017 3.28% 13.60%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.70 21,416 12/31/2017 3.15% 4.23%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $17.10 $16.60 187,746 06/30/2017 2.99% 12.41%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.63 937,999 09/30/2017 2.93% 5.94%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.57 $18.05 8,178 06/30/2017 2.85% 11.83%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $26.08 1,792 06/30/2017 2.57% 10.66%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $10.25 $10.00 57,426 06/30/2017 2.50% 10.37%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.07 $24.50 161,105 06/30/2017 2.33% 9.66%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.48 4,123,283 10/31/2017 2.16% 3.74%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.69 $10.48 234,915 06/30/2017 1.98% 8.23%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $12.99 $12.75 14,880 06/30/2017 1.90% 7.89%
+ KZ 12/01/2016 Linkedsee Limited and Wiseman International Limited (N/A) All Cash $299 million $7.55 $7.41 101,374 03/31/2017 1.89% 0.00%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $110.94 771,663 06/21/2017 1.86% 8.58%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.64 $26.15 26,660 09/30/2017 1.85% 3.76%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.70 255,870 09/30/2017 1.69% 3.44%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.10 1,257,993 06/30/2017 1.69% 7.03%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.95 182,364 04/30/2017 1.68% 22.72%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.50 876,389 09/30/2017 1.64% 3.32%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.95 3,475,234 12/31/2017 1.64% 2.19%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $55.61 545,097 12/31/2017 1.60% 2.15%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.78 31,666 06/30/2017 1.60% 6.62%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $4.9 billion $60.20 $59.37 5,092,237 06/30/2017 1.40% 5.81%
+ XRA 03/28/2017 Goldcorp Inc. (GG) All Stock $184.45 $1.75 $1.73 1,177,405 06/30/2017 1.20% 4.99%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $54.61 $53.99 1,044,736 06/30/2017 1.15% 4.75%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.74 $20.51 1,075,095 12/31/2017 1.11% 1.49%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.15 340,334 09/30/2017 1.06% 2.14%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $89.08 2,303,197 09/30/2017 1.03% 2.09%
+ ERS 03/31/2017 A unit of Ta Chen Stainless Pipe Co., Ltd. (N/A) All Cash $160.57 million $7.00 $6.93 375,322 06/30/2017 1.01% 4.19%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.09 353,111 03/31/2017 0.91% 0.00%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $15.52 $15.40 264,953 03/31/2017 0.77% 0.00%
+ TRR 03/31/2017 New Mountain Capital (N/A) All Cash $438 million $17.55 $17.45 5,061,500 06/30/2017 0.57% 2.38%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $35.26 $35.07 1,010,068 06/30/2017 0.54% 2.26%
+ SGM 01/26/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.96 23,238 06/30/2017 0.50% 2.08%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.35 17,317 12/31/2017 0.49% 0.66%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.73 $29.62 116,043 06/30/2017 0.39% 1.61%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.90 69 03/31/2017 0.39% 0.00%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.23 $12.19 262,243 06/30/2017 0.35% 1.43%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $36.63 $36.52 1,608,962 03/31/2017 0.30% 0.00%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.97 240,303 06/30/2017 0.30% 1.25%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.40 441,309 06/30/2017 0.30% 1.24%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.95 282,572 06/30/2017 0.28% 1.16%
+ SCNB 06/26/2016 People's United Financial Inc. (PBCT) All Stock $402 million $40.50 $40.41 2,176,239 03/31/2017 0.21% 0.00%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $30.00 $29.94 130,544 06/30/2017 0.19% 0.80%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $56.15 20,602,748 03/31/2017 0.18% 0.00%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $28.25 867,872 06/30/2017 0.18% 0.73%
+ MPG 11/03/2016 American Axle & Manufacturing Holdings Inc. (AXL) Cash Plus Stock $3.3 billion $22.89 $22.85 170,297 06/30/2017 0.18% 0.73%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.47 371,668 06/30/2017 0.14% 0.58%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.48 580,148 06/30/2017 0.10% 0.43%
+ CEB 01/05/2017 Gartner, Inc. (IT) Cash Plus Stock $3.3 billion $78.66 $78.60 414,784 06/30/2017 0.08% 0.34%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.65 425,692 10/31/2017 0.00% 0.00%
+ GIG 02/13/2017 Integrated Device Technology, Inc. (IDTI) All Cash $250 million $3.08 $3.08 291,742 06/30/2017 0.00% 0.00%
+ NMBL 03/06/2017 Hewlett Packard Enterprise Company (HPE) All Cash $1.09 billion $12.50 $12.50 2,993,462 04/30/2017 0.00% 0.00%
+ AIRM 03/14/2017 American Securities LLC (N/A) All Cash $2.5 billion $43.00 $43.00 1,310,885 06/30/2017 0.00% 0.00%
+ EXAR 03/29/2017 MaxLinear, Inc. (MXL) All Cash $472 million $13.00 $13.01 1,872,344 06/30/2017 -0.08% -0.32%
+ MBRG 10/24/2016 Access National Corporation (ANCX) All Stock $233.1 million $39.97 $40.04 118,798 04/15/2017 -0.18% -5.42%
+ MEP 01/26/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $8.05 189,791 06/30/2017 -0.62% -2.58%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $34.79 $35.05 387,303 09/30/2017 -0.75% -1.52%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $130.47 $132.08 179,236 06/30/2017 -1.22% -5.06%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $5.89 $6.06 18,749 06/30/2017 -2.86% -11.87%
+ BEAV 10/23/2016 Rockwell Collins (COL) Special Conditions $8.3 billion $62.00 $64.11 970,061 03/31/2017 -3.29% 400.43%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $27.80 630,155 06/30/2017 -3.60% -14.92%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $26.36 213,470 06/30/2017 -12.75% -52.87%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $880 million $13.25 $16.81 597,074 12/31/2017 -21.18% -28.42%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $46.88 $63.02 5,543,744 09/30/2017 -25.61% -51.93%

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

2 Comments

  1. GeorgeCiardi
    April 3, 2017 at 4:43 am

    I also saw a reverse merger announced this week with Jaguar Animal Health, Inc. (JAGX). It is small but you might want to consider adding it to the list.

    • Asif Suria
      April 23, 2017 at 12:52 pm

      My apologies on not responding to this sooner. We did look into this reverse merger and decided not to add it to the MAT because the merger will lead to the creation of a new company and hence tracking a spread on the deal becomes difficult.

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