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:
- The acquisition of Bear State Financial (BSF) by Arvest Bank for $391 million or $10.28 per share in cash.
- 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:
- 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.
- 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.
- 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).
- On August 23, 2017, The State of New Jersey has approved CenturyLink’s (CTL) pending acquisition of Level 3 Communications (LVLT).
- 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.
- 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.
- 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:
- 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.
- The acquisition of Mobileye (MBLY) by Intel Corporation (INTC) on August 21, 2017. It took 161 days for this deal to be completed.
- 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:
Closing
Price |
|---|
| 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:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
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
