Merger Arbitrage Mondays – August 28, 2017

Merger activity decreased last week with two new deals announced and three 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 four new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 134
Total Number of Deals Not Completed in 2017 8
Total Number of Pending Deals
Cash Deals 58
Stock Deals 26
Stock & Cash Deals 11
Special Conditions 6
Total Number of Pending Deals 101
Total Deal Size $858.19 billion

New Deals:

  1. The acquisition of Bear State Financial (BSF) by Arvest Bank for $391 million or $10.28 per share in cash.
  2. The acquisition of Dimension Therapeutics (DMTX) by Regenxbio (RGNX) for $3.41 per share in an all stock deal. Dimension shareholders will receive 0.1573 shares of Regenxbio in exchange for each of their shares in Dimension. Based on Dimension’s market cap on Monday, the deal value works out to $83 million. However since enterprise value is the more appropriate measure of deal value in most cases, Dimension’s enterprise value at the deal price works out to just $41 million after taking into account nearly $42 million in net cash on the balance sheet.

Deal Updates:

  1. On August 21, 2017, Nord Anglia Education (NORD) announced that at an extraordinary general meeting of shareholders, the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger.
  2. On August 22, 2017, the Ministry of Commerce of the People’s Republic of China issued a written notice that it has granted conditional approval of the proposed acquisition of Brocade (BRCD) by Broadcom. Brocade (BRCD) expects that the Merger will be completed during its fourth fiscal quarter ending October 28, 2017, assuming the timely satisfaction or waiver of the other closing conditions set forth in the Merger Agreement, including clearance from the Committee on Foreign Investment in the United States.
  3. On August 22, 2017, The Instituto Federal de Telecomunicaciones and the Comisión Federal de Competencia Económica approved AT&T’s (T) pending acquisition of Time Warner (TWX).
  4. On August 23, 2017, The State of New Jersey has approved CenturyLink’s (CTL) pending acquisition of Level 3 Communications (LVLT).
  5. On August 23, 2017, Thermo Fisher Scientific (TMO) announced that all required antitrust clearances have been obtained for the previously announced all-cash tender offer by its wholly owned subsidiary, Thermo Fisher (CN) Luxembourg S.à r.l., to purchase all of the outstanding ordinary shares of Patheon (PTHN). As a result of the antitrust approvals, Thermo Fisher expects to complete the tender offer promptly following the expiration of the offer, which is scheduled to expire on August 28, 2017.
  6. On August 24, 2017, Amazon (AMZN) and Whole Foods Market (WFM) announced that Amazon’s acquisition of Whole Foods Market will close on Monday August 28, 2017. In typical Amazon fashion, the company plans to drop prices for several items at Whole Foods on Monday and also will offer special prices and perks to Amazon Prime customers.
  7. On August 24, 2017, Qualcomm Incorporated (QCOM) announced that Qualcomm River Holdings has extended the offering period of its previously announced cash tender offer to purchase all of the outstanding common shares of NXP Semiconductors (NXPI).  The tender offer is now scheduled to expire  on September 22, 2017, unless extended or earlier terminated, in either case pursuant to the terms of the Purchase Agreement. The transaction is expected to close by the end of calendar 2017.

Closed Deals:

  1. The acquisition of Alliance Healthcare Services (AIQ) by Tahoe Investment Group on August 21, 2017. It took 132 days for this deal to be completed.
  2. The acquisition of Mobileye (MBLY) by Intel Corporation (INTC) on August 21, 2017. It took 161 days for this deal to be completed.
  3. The acquisition of Nutraceutical International Corporation (NUTR) by an affiliate of HGGC on August 25, 2017. It took 95 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 $3.42 11/30/2017 58.77% 228.21%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $5.69 09/30/2017 45.87% 507.35%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $15.76 12/31/2017 14.21% 41.50%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $54.48 09/30/2017 12.89% 142.52%
HUN 05/22/2017 CLARIANT N (CLN.VX) $29.34 $26.57 12/31/2017 10.44% 30.49%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.60 12/31/2017 9.61% 28.05%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.85 12/31/2017 9.54% 27.86%
ATW 05/30/2017 Ensco plc (ESV) $7.09 $6.54 09/30/2017 8.38% 92.68%
XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) $10.25 $9.56 12/31/2017 7.22% 21.08%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $101.42 12/31/2017 5.99% 17.51%

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 $3.42 2,275,494 11/30/2017 58.77% 228.21%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $5.69 230,983 09/30/2017 45.87% 507.35%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $15.76 156,349 12/31/2017 14.21% 41.50%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $54.48 474,642 09/30/2017 12.89% 142.52%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $29.36 $26.57 1,218,200 12/31/2017 10.51% 30.69%
+ CBMX 07/31/2017 Invitae Corporation (NVTA) All Cash $20.22 million $8.33 $7.60 30,352 12/31/2017 9.61% 28.05%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $116.85 903,491 12/31/2017 9.54% 27.86%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $7.09 $6.54 3,443,325 09/30/2017 8.38% 92.68%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.56 128,825 12/31/2017 7.22% 21.08%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $101.42 3,067,877 12/31/2017 5.99% 17.51%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $28.38 639,424 06/30/2018 5.71% 6.81%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $48.29 2,521,864 09/30/2017 5.61% 62.07%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.80 112,593 06/30/2018 5.31% 6.33%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $32.21 $30.61 12,133 12/31/2018 5.23% 3.90%
+ DMTX 08/25/2017 Regenxbio Inc. (RGNX) All Stock $41 million $3.31 $3.15 4,340,770 12/31/2017 5.12% 14.94%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $41.92 $40.02 897,865 12/31/2017 4.76% 13.88%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.50 1,213,103 03/31/2018 4.62% 7.84%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $27.89 $26.72 2,166,342 12/31/2017 4.39% 12.81%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $86.22 934,210 03/31/2018 4.38% 7.44%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $14.64 13,021,906 03/31/2018 4.17% 7.07%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.30 14,554,870 10/28/2017 3.66% 21.89%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $5.49 $5.34 47,698 12/31/2017 2.85% 8.31%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.63 106,964 12/31/2018 2.65% 1.98%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.10 4,868 09/30/2017 2.59% 28.64%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $53.13 $51.84 3,994 12/31/2017 2.49% 7.27%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.18 $4.08 44,705 09/30/2017 2.37% 26.26%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $179.96 53,203 03/15/2018 2.24% 4.12%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $29.89 $29.25 17,736 01/15/2018 2.17% 5.67%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $23.40 $22.90 12,146 01/31/2018 2.16% 5.06%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $55.40 $54.29 2,001,263 09/30/2017 2.05% 22.63%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $22.15 $21.73 13,282 03/31/2018 1.94% 3.30%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.87 31,453 12/31/2017 1.89% 5.53%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $32.50 $31.90 7,958 12/31/2017 1.88% 5.49%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.10 61,963 01/08/2018 1.73% 4.75%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $48.18 68,240 12/31/2017 1.70% 4.97%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.61 $17.32 33,432 12/31/2017 1.66% 4.84%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $323.74 $318.78 384,057 11/30/2017 1.56% 6.05%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $34.13 $33.64 79,278 03/31/2018 1.46% 2.49%
+ 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 $11.025 420,607 12/31/2017 1.41% 4.11%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.97 638,143 12/31/2017 1.38% 4.03%
+ WNRL 08/14/2017 Andeavor Logistics LP (ANDX) All Stock $1.8 billion $25.04 $24.70 97,643 12/31/2017 1.38% 4.02%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.45 $37.95 797,592 12/31/2017 1.33% 3.88%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $9.37 $9.25 47,227 03/31/2018 1.28% 2.17%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $3.90 $3.85 6,121 12/31/2017 1.22% 3.56%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $18.36 $18.15 190,684 10/06/2017 1.17% 10.96%
+ NDRM 07/24/2017 Mitsubishi Tanabe Pharma Corporation (N/A) All Cash $654.33 million $39.00 $38.55 1,581,058 12/31/2017 1.17% 3.41%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.13 $7.05 890,347 08/31/2017 1.15% 140.48%
+ NVDQ 06/19/2017 Stryker Corporation (SYK) All Cash $701 million $11.75 $11.62 193,498 09/30/2017 1.12% 12.37%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $4.65 $4.60 230,055 12/31/2017 1.11% 3.25%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $25.68 $25.40 84,580 09/30/2017 1.10% 12.14%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.85 152,388 12/31/2017 1.08% 3.16%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $19.80 2,358 12/31/2017 1.01% 2.95%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.11 340,344 12/31/2017 0.99% 2.90%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.05 480,505 12/31/2017 0.99% 2.89%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $36.31 $35.95 47,387 12/31/2017 0.99% 2.89%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.53 $11.43 328,827 12/31/2017 0.87% 2.53%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.00 202,027 05/01/2018 0.86% 1.28%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.88 184,064 12/31/2017 0.74% 2.17%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.87 64,778 09/30/2017 0.73% 8.05%
+ SHOR 07/27/2017 Mitel Networks Corporation (MITL) All Cash $430 million $7.50 $7.45 1,338,080 09/30/2017 0.67% 7.42%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.92 $33.70 84,264 10/31/2017 0.67% 3.79%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.73 $19.61 293,526 12/31/2017 0.62% 1.81%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $27.04 $26.87 1,781,495 09/30/2017 0.62% 6.83%
+ CDI 07/31/2017 affiliates of AE Industrial Partners, LLC (N/A) All Cash $168 million $8.25 $8.20 111,633 09/30/2017 0.61% 6.74%
+ NEFF 08/16/2017 United Rentals, Inc. (URI) All Cash $838 million $25.00 $24.85 114,997 12/31/2017 0.60% 1.76%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.36 724,906 12/31/2017 0.60% 1.75%
+ SFR 08/10/2017 Invitation Homes Inc. (INVH) All Stock $7.36 billion $36.94 $36.74 692,963 12/31/2017 0.56% 1.62%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.50 222,863 09/30/2017 0.54% 5.98%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.40 77,167 09/30/2017 0.52% 5.70%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.08 1,042,896 09/30/2017 0.51% 5.68%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $23.87 $23.75 72,715 09/30/2017 0.50% 5.50%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $40.43 $40.24 45,731 10/31/2017 0.46% 2.63%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.70 526,563 10/31/2017 0.46% 2.60%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.10 313,336 12/31/2017 0.45% 1.32%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $64.39 $64.11 354,852 12/31/2017 0.43% 1.26%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $20.91 328,827 12/31/2017 0.43% 1.26%
+ GUID 07/26/2017 Open Text Corporation (OTEX) All Cash $161.94 million $7.10 $7.07 351,482 09/30/2017 0.42% 4.69%
+ MYCC 07/10/2017 Certain Investment Funds Affiliated with Apollo Global Management (N/A) All Cash $1.1 billion $17.12 $17.05 290,333 12/31/2017 0.41% 1.20%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.93 290,455 09/30/2017 0.31% 3.42%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.22 7,276,598 12/31/2017 0.29% 0.86%
+ WBMD 07/24/2017 Internet Brands (N/A) All Cash $2.8 billion $66.50 $66.32 604,040 12/31/2017 0.27% 0.79%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.97 405,243 12/31/2017 0.25% 0.73%
+ STS 08/08/2017 Wabash National Corporation (WNC) All Cash $260.9 million $21.00 $20.95 159,924 12/31/2017 0.24% 0.70%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $44.37 $44.30 1,543 12/31/2017 0.15% 0.44%
+ ARIS 06/21/2017 True Wind Capital Management, LLC (N/A) All Cash $140 million $7.10 $7.09 44,981 09/30/2017 0.14% 1.56%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $33.69 $33.65 4,308 12/31/2017 0.13% 0.37%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.27 242,365 03/31/2018 0.10% 0.17%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.73 490,690 08/31/2017 0.09% 11.20%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.97 232,040 08/28/2017 0.09% 0.00%
+ WFM 06/16/2017 Amazon.com, Inc. (AMZN) All Cash $13.7 billion $42.00 $41.99 4,271,255 08/28/2017 0.02% 0.00%
+ FUEL 07/18/2017 Sizmek Inc. (N/A) All Cash $145 million $2.60 $2.60 603,737 09/30/2017 0.00% 0.00%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.10 69,879 12/31/2017 0.00% 0.00%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.52 349,124 08/31/2017 -0.06% -7.48%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $36.07 $36.10 389,786 12/31/2017 -0.09% -0.25%
+ SEV 07/17/2017 BorgWarner (N/A) All Cash $200 million $22.00 $22.05 2,070 12/31/2017 -0.23% -0.66%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.59 11,312 12/31/2017 -0.29% -0.86%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.21 366,120 12/31/2017 -0.60% -1.76%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.36 88,278 12/31/2017 -1.14% -3.34%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $112.23 1,086,110 12/31/2017 -1.99% -5.80%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $41.76 43,783 12/31/2017 -22.17% -64.75%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.17 615,044 12/31/2017 -30.16% -88.06%

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.

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