Merger Arbitrage Mondays – July 17, 2017

Merger activity decreased last week with three new deals announced, one deal 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 two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 110
Total Number of Deals Not Completed in 2017 6
Total Number of Pending Deals
Cash Deals 62
Stock Deals 20
Stock & Cash Deals 13
Special Conditions 6
Total Number of Pending Deals 101
Total Deal Size $815.67 billion

New Deals:

  1. The acquisition of ClubCorp Holdings (MYCC) by Certain Investment Funds Affiliated with Apollo Global Management for $1.1 billion or $17.12 per share in cash. The ClubCorp Board of Directors also declared a one-time quarterly dividend of $0.13 per share of common stock. The dividend is expected to be paid on July 28, 2017, to shareholders of record at the close of business on July 21, 2017.
  2. The acquisition of Hawaiian Telcom Holdco (HCOM) by Cincinnati Bell (CBB) for $650 million. Under the agreement, Hawaiian Telcom stockholders will have the option to elect either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each share of Hawaiian Telcom, subject to proration such that the aggregate consideration to be paid to Hawaiian Telcom stockholders will be 60 percent cash and 40 percent Cincinnati Bell common stock. We are treating this as a cash plus stock type of deal.
  3. The acquisition of Neff Corporation (NEFF) by H&E Equipment Services (HEES) for $1.2 billion or $21.07 per share in cash. The per share merger consideration payable to Neff stockholders is subject to certain downward adjustments, not to exceed $0.44 per share, in the event that H&E incurs certain increased financing costs due to the transaction not being consummated on or prior to January 14, 2018.

Deal Updates:

  1. On July 10, 2017, The states of Alaska, Colorado, New York and Pennsylvania recently approved CenturyLink’s (CTL) acquisition of Level 3 Communications (LVLT).
  2. On July 10, 2017, Westar Energy (WR) and Great Plains Energy Incorporated (GXP) announced that both companies’ boards of directors have unanimously approved a revised transaction that involves no premium paid or received with respect to either company, no transaction debt, no exchange of cash, and is a stock-for-stock merger of equals, creating a company with a combined equity value of approximately $14 billion. We have removed this deal from our database.
  3. On July 11, 2017,  Merus Labs International (MSLI) announced that at a special meeting of shareholders, Merus shareholders voted in favour of the proposed transaction pursuant to which Norgine B.V. agreed to acquire all of the issued and outstanding common shares of Merus. Subject to obtaining such court approval and the satisfaction or waiver of all other closing conditions, it is anticipated that the Arrangement will be completed on or about July 17, 2017.
  4. On July 11, 2017, shareholders of Cabela’s (CABagreed to be acquired by Bass Pro Shops for $5 billion.
  5. On July 11, 2017, Panera Bread Company (PNRA) announced that at a special meeting, Panera’s stockholders overwhelmingly approved the previously announced merger agreement relating to the proposed transaction between Panera and JAB Holdings. The transaction remains subject to certain closing conditions and is expected to close in July 2017.
  6. On July 12, 2017, Fortress Investment Group (FIG) announced that, at its special meeting of shareholder, the Company’s shareholders had voted, among other things, in favor of the proposal to adopt the previously announced merger agreement pursuant to which certain subsidiaries of SoftBank Group will acquire Fortress.
  7. On July 13, 2017, Genworth Financial (GNW) and China Oceanwide Holdings Group reported that they have withdrawn and re-filed their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS) a second time to provide CFIUS more time to review and discuss the proposed transaction between Genworth and Oceanwide.

Closed Deals:

  1. The acquisition of Kate Spade & Company (KATE) by Coach (COH) on July 11, 2017. It took 64 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
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.57 07/31/2017 52.10% 1358.34%
DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) $3.77 $2.78 10/31/2017 35.78% 123.19%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.74 09/30/2017 23.15% 112.64%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.10 12/31/2017 9.31% 20.34%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $99.79 12/31/2017 7.73% 16.89%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.78 12/31/2017 7.27% 15.89%
RICE 06/19/2017 EQT Corporation (EQT) $28.20 $26.50 12/31/2017 6.40% 13.98%
HUN 05/22/2017 CLARIANT N (CLN.VX) $28.64 $26.96 12/31/2017 6.23% 13.62%
SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) $49.00 $46.25 12/31/2017 5.95% 13.00%
ATW 05/30/2017 Ensco plc (ESV) $8.29 $7.86 09/30/2017 5.45% 26.50%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.57 6,293,767 07/31/2017 52.10% 1358.34%
+ DEST 12/20/2016 Orchestra-Pr�maman S.A. (KAZI.PA) All Stock $100 million $3.78 $2.78 32,492 10/31/2017 35.86% 123.48%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.74 216,846 09/30/2017 23.15% 112.64%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $117.10 1,364,012 12/31/2017 9.31% 20.34%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $99.79 2,229,905 12/31/2017 7.73% 16.89%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $16.78 494,340 12/31/2017 7.27% 15.89%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $28.20 $26.50 3,420,704 12/31/2017 6.40% 13.98%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $28.66 $26.96 1,077,503 12/31/2017 6.30% 13.77%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $46.25 99,846 12/31/2017 5.95% 13.00%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $8.29 $7.86 6,078,828 09/30/2017 5.45% 26.50%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.80 219,370 06/30/2018 5.31% 5.57%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.80 155,363 12/31/2017 4.59% 10.04%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $20.31 $19.50 106,926 07/31/2017 4.17% 108.63%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $5.95 $5.72 37,767 12/31/2017 3.96% 8.66%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $29.77 $28.73 50,417 12/31/2018 3.60% 2.47%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.75 $41.35 954,053 12/31/2017 3.39% 7.41%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.36 $4.23 23,120 09/30/2017 2.98% 14.53%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $59.81 473,937 09/30/2017 2.83% 13.75%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $31.48 $30.62 14,808 01/15/2018 2.80% 5.61%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $179.39 183,538 03/15/2018 2.57% 3.89%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.65 $33.83 18,125 12/31/2017 2.43% 5.31%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.20 1 09/30/2017 2.18% 10.62%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $36.57 $35.80 134,481 12/31/2017 2.15% 4.71%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $59.34 $58.12 1,128,149 09/30/2017 2.11% 10.25%
+ SCLN 06/08/2017 a consortium consisting of entities affiliated with GL Capital Management GP Limited, Bank of China Group Investment Limited, CDH Investments, Ascendent Capital Partners and Boying (N/A) All Cash $605 million $11.18 $10.95 833,622 12/31/2017 2.10% 4.59%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.17 $16.85 6,371 12/31/2017 1.90% 4.16%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.07 300,172 01/08/2018 1.86% 3.89%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $40.97 $40.25 6,807 10/31/2017 1.80% 6.19%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.8900 51,644 12/31/2017 1.60% 3.49%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.09 9,432,273 12/31/2017 1.59% 3.47%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $39.16 $38.55 437,285 12/31/2017 1.58% 3.44%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.87 $24.50 43,968 01/31/2018 1.51% 2.78%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $324.78 $320.04 208,309 11/30/2017 1.48% 3.98%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $50.26 N/A 09/30/2017 1.47% 7.17%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.925 21,346 12/31/2017 1.35% 2.96%
+ NEFF 07/14/2017 H&E Equipment Services, Inc. (HEES) All Cash $1.2 billion $21.07 $20.80 1,927,056 10/31/2017 1.30% 4.47%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $26.10 $25.78 944,293 09/30/2017 1.24% 6.01%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.14 505,576 10/31/2017 1.10% 3.79%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $44.38 $43.90 3,598 12/31/2017 1.10% 2.39%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.645 2,613,542 03/31/2018 1.06% 1.50%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.89 $33.55 231,200 12/31/2017 1.03% 2.24%
+ MRVC 07/02/2017 ADVA Optical Networking (N/A) All Cash $50.57 million $10.00 $9.90 65,044 09/30/2017 1.01% 4.92%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.88 4,951,278 12/31/2017 1.01% 2.21%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.05 446,440 12/31/2017 0.99% 2.16%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $25.60 $25.35 93,551 09/30/2017 0.99% 4.81%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $61.15 $60.58 415,725 12/31/2017 0.95% 2.07%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.85 474,187 12/31/2017 0.88% 1.91%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.86 108,612 09/30/2017 0.86% 4.16%
+ ARIS 06/21/2017 True Wind Capital Management, LLC (N/A) All Cash $140 million $7.10 $7.04 51,520 09/30/2017 0.85% 4.15%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.77 $11.67 150,264 12/31/2017 0.83% 1.82%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.21 $20.06 387,329 12/31/2017 0.76% 1.66%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.00 667,925 09/30/2017 0.76% 3.69%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.02 527,534 12/31/2017 0.75% 1.64%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.33 209,888 12/31/2017 0.73% 1.59%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.42 524,881 09/30/2017 0.63% 3.05%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.62 505,562 09/30/2017 0.60% 2.93%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $52.18 $51.87 52,465 12/31/2017 0.60% 1.31%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.12 $7.08 636,824 12/31/2017 0.57% 1.25%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $109.40 1,624,146 12/31/2017 0.55% 1.20%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.81 912,914 12/31/2017 0.55% 1.19%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $25.99 $25.86 596,780 09/30/2017 0.51% 2.48%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $19.90 26,706 12/31/2017 0.50% 1.10%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.91 50,386 09/30/2017 0.50% 2.45%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.69 2,832,489 10/31/2017 0.47% 1.63%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.35 181,698 09/30/2017 0.45% 2.19%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $11.50 $11.45 99,248 09/30/2017 0.44% 2.13%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.95 665,178 12/31/2017 0.36% 0.78%
+ SAJA 04/26/2017 AMPLEXOR International SA (N/A) All Cash 28.5 million $5.83 $5.81 9,537 07/31/2017 0.34% 8.97%
+ NVDQ 06/19/2017 Stryker Corporation (SYK) All Cash $701 million $11.75 $11.71 967,573 09/30/2017 0.34% 1.66%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $63.33 11,601,208 12/31/2017 0.33% 0.72%
+ NCIT 07/03/2017 by private funds managed by an affiliate of H.I.G. Capital, LLC (N/A) All Cash $190.44 million $20.00 $19.95 57,023 09/30/2017 0.25% 1.22%
+ NUTR 05/22/2017 an affiliate of HGGC (N/A) All Cash $446 million $41.80 $41.70 90,247 12/31/2017 0.24% 0.52%
+ SNOW 04/10/2017 An entity controlled by affiliates of the Aspen Skiing Compan and KSL Capital Partners (N/A) All Cash $1.5 billion $23.75 $23.7100 235,341 09/30/2017 0.17% 0.82%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $38.41 $38.35 474,638 12/31/2017 0.16% 0.35%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.71 6,032 12/31/2017 0.15% 0.33%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.27 $11.25 11,323 09/30/2017 0.14% 0.68%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.33 $25.30 169,541 07/31/2017 0.14% 3.52%
+ SPNC 06/28/2017 Philips (PHG) All Cash $2.2 billion $38.50 $38.45 2,092,609 09/30/2017 0.13% 0.63%
+ MYCC 07/10/2017 Certain Investment Funds Affiliated with Apollo Global Management (N/A) All Cash $1.1 billion $17.12 $17.10 1,227,627 12/31/2017 0.12% 0.26%
+ XTLY 05/30/2017 Vista Equity Partners (N/A) All Cash $354.28 million $15.65 $15.64 264,551 09/30/2017 0.06% 0.31%
+ KCG 04/20/2017 Virtu Financial, Inc. (VIRT) All Cash $1.56 billion $20.00 $19.99 541,909 09/30/2017 0.05% 0.24%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $314.88 546,190 07/31/2017 0.04% 0.99%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $11.00 97,052 07/15/2017 0.00% 0.00%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.250 13,911 09/30/2017 0.00% 0.00%
+ COVS 06/05/2017 Open Text Corporation (OTEX) All Cash $103 million $2.45 $2.45 8,001 09/30/2017 0.00% 0.00%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.15 335,869 12/31/2017 -0.16% -0.35%
+ NAME 06/14/2017 Donuts Inc. (N/A) All Cash $213 million $10.60 $10.62 19,817 09/30/2017 -0.19% -0.92%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $32.72 $32.80 6,693 12/31/2017 -0.24% -0.52%
+ WFM 06/16/2017 Amazon.com, Inc. (AMZN) All Cash $13.7 billion $42.00 $42.10 6,563,943 12/31/2017 -0.24% -0.52%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.18 571,355 12/31/2017 -0.27% -0.59%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.59 24,360 12/31/2017 -0.29% -0.64%
+ ENOC 06/22/2017 Enel Green Power North America, Inc. (N/A) All Cash $300 million $7.67 $7.72 214,958 09/30/2017 -0.65% -3.15%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.23 78,272 12/31/2017 -0.71% -1.56%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.70 76,999 09/30/2017 -1.02% -4.94%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.89 219,714 08/31/2017 -1.19% -9.62%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.66 1,948 12/31/2017 -2.73% -5.97%
+ MSLI 05/11/2017 Norgine B.V. (N/A) All Cash $342 million $1.20 $1.30 27,634 07/17/2017 -7.69% 0.00%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $38.14 43,860 07/31/2017 -14.79% -385.53%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.25 30,553 07/31/2017 -22.22% -579.37%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.66 $65.56 5,681,120 09/30/2017 -27.30% -132.87%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.48 121,428 12/31/2017 -31.89% -69.70%

Disclaimer: I hold positions in Staples (SPLS), Whole Foods (WFM), Cabela’s (CAB) 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

Leave A Comment

You must be logged in to post a comment.