Merger Arbitrage Mondays – January 8, 2018

Merger activity increased last week with two new deals announced and one pending 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 was two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 1
Total Number of Deals Not Completed in 2018 1
Total Number of Pending Deals
Cash Deals 37
Stock Deals 17
Stock & Cash Deals 8
Collars 1
Special Conditions 6
Total Number of Pending Deals 68
Total Deal Size $454.08 billion

New Deals:

  1. The acquisition of Archrock Partners (APLP) by Archrock (AROC) for $2.28 billion in an all stock deal. Under the merger agreement, each outstanding common unit of Archrock Partners that Archrock does not already own will be converted into 1.400 shares of Archrock common stock. AROC is paying $607 million for the portion of APLP it doesn’t already own.
  2. The acquisition of SCANA Corporation (SCG) by Dominion Energy (D) for $14.6 billion in an all stock deal. Under the terms of the agreement, SCANA shareholders would receive 0.6690 shares of Dominion Energy common stock for each share of SCANA common stock.

Deal updates:

  1. On January 2, 2018, MoneyGram (MGI) and Ant Financial Services Group announced that they have mutually agreed to terminate their Amended Merger Agreement following the inability of the companies to obtain the required approval for the transaction from the Committee on Foreign Investment in the United States (“CFIUS”), despite extensive efforts to address the Committee’s concerns.
  2. On January 4, 2018, Genworth Financial (GNW) and China Oceanwide Holdings Group issued an update on the status of their efforts to obtain clearance of their proposed transaction from CFIUS. There can be no assurances that CFIUS will ultimately agree to clear a transaction between Genworth and Oceanwide on terms acceptable to the parties or at all. In addition to clearance by CFIUS, the closing of the proposed transaction remains subject to the receipt of state-level regulatory approvals that are pending in Delaware and New York, as well as regulatory reviews in China and other international jurisdictions and other closing conditions.
  3. On January 4, 2018, Littelfuse (LFUS) and IXYS Corporation (IXYSannounced the election deadline by which IXYS stockholders of record may elect to receive cash, shares of Littelfuse common stock or both as merger consideration in connection with the Littelfuse acquisition of IXYS. The election deadline is 5:00 p.m. Eastern Time on January 12, 2018. The parties expect to close the transaction on January 17, 2018.

Closed Deals:

  1. The acquisition of Silver Spring Networks (SSNI) by Itron (ITRI) on January 5, 2018. It took 109 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 $3.21 04/01/2018 69.16% 304.13%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $24.64 06/30/2018 21.75% 45.90%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.23 $1.85 06/30/2018 20.65% 43.57%
TWX 10/22/2016 AT&T, Inc. (T) $108.56 $93.60 06/21/2018 15.98% 35.57%
SCG 01/03/2018 Dominion Energy, Inc. (D) $51.41 $45.02 06/30/2018 14.18% 29.93%
AET 12/03/2017 CVS Health (CVS) $210.73 $185.81 12/31/2018 13.41% 13.71%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.60 03/31/2018 7.93% 35.28%
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $32.46 03/31/2018 4.74% 21.12%
ROSG 12/15/2017 Genoptix, Inc. (N/A) $0.60 $0.574 03/31/2018 4.53% 20.16%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $86.14 03/31/2018 4.48% 19.95%

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 $3.21 3,563,461 04/01/2018 69.16% 304.13%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $24.64 264,768 06/30/2018 21.75% 45.90%
+ SXE 11/01/2017 American Midstream Partners, LP (AMID) All Stock $815 million $2.23 $1.85 77,329 06/30/2018 20.65% 43.57%
+ TWX 10/22/2016 AT&T, Inc. (T) Collars $108.7 billion $108.56 $93.60 5,414,831 06/21/2018 15.98% 35.57%
+ SCG 01/03/2018 Dominion Energy, Inc. (D) All Stock $14.6 billion $51.41 $45.02 5,773,655 06/30/2018 14.18% 29.93%
+ AET 12/03/2017 CVS Health (CVS) Cash Plus Stock $77 billion $210.73 $185.81 4,473,357 12/31/2018 13.41% 13.71%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $63.5 billion $128.00 $118.60 4,291,189 03/31/2018 7.93% 35.28%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.46 605,656 03/31/2018 4.74% 21.12%
+ ROSG 12/15/2017 Genoptix, Inc. (N/A) All Cash $10 million $0.60 $0.574 173,939 03/31/2018 4.53% 20.16%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $86.14 934,297 03/31/2018 4.48% 19.95%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $30.32 $29.14 10,625 12/31/2018 4.05% 4.14%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.8500 206 06/30/2018 3.62% 7.64%
+ CALL 11/09/2017 B. Riley Financial, Inc. (RILY) All Cash $143 million $8.71 $8.45 65,254 06/30/2018 3.08% 6.49%
+ CAVM 11/20/2017 Marvell Technology Group Ltd. (MRVL) Cash Plus Stock $6 billion $90.04 $87.46 752,517 06/30/2018 2.95% 6.23%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $43.07 $41.87 839,583 03/31/2018 2.87% 12.79%
+ ACFC 11/17/2017 Ameris Bancorp (ABCB) Cash Plus Stock $145 million $9.96 $9.68 168,464 06/30/2018 2.87% 6.06%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $86.05 322,990 06/30/2018 2.56% 5.39%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $10.00 586,522 07/31/2018 2.50% 4.47%
+ GNRT 12/21/2017 Euronav NV (EURN) All Stock $2.08 billion $6.76 $6.60 789,465 06/30/2018 2.47% 5.21%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $136.66 1,411,876 09/30/2018 2.44% 3.37%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.79 460,908 12/31/2018 2.34% 2.39%
+ FNBG 12/12/2017 TriCo Bancshares (TCBK) All Stock $315.3 million $37.83 $37.03 17,978 06/30/2018 2.16% 4.55%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $131.90 211,929 06/30/2018 1.97% 4.16%
+ SIGM 12/08/2017 Silicon Labs (SLAB) All Cash $185.98 million $7.05 $6.925 184,517 03/31/2018 1.81% 8.03%
+ JASO 11/17/2017 JASO Holdings Limited, JASO Parent Limited and JASO Acquisition Limited (N/A) All Cash $677.43 $7.55 $7.42 493,850 03/31/2018 1.75% 7.80%
+ DYN 10/30/2017 Vistra Energy Corp. (VST) All Stock $12.3 billion $12.18 $11.97 1,416,691 06/30/2018 1.75% 3.69%
+ PNK 12/18/2017 Penn National Gaming, Inc. (PENN) Cash Plus Stock $5.85 billion $32.93 $32.40 470,391 12/31/2018 1.64% 1.68%
+ BGC 12/04/2017 Prysmian Group (N/A) All Cash $3 billion $30.00 $29.60 854,241 09/30/2018 1.35% 1.86%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.20 47,030 01/08/2018 1.29% 0.00%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $15.08 8,855,918 03/31/2018 1.13% 5.02%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $182.00 49,016 03/15/2018 1.10% 6.08%
+ CPLA 10/30/2017 Strayer Education, Inc. (STRA) All Stock $820.96 million $79.94 $79.10 32,162 09/30/2018 1.06% 1.46%
+ CBI 12/18/2017 McDermott International, Inc. (MDR) All Stock $3.73 billion $18.22 $18.05 3,189,429 06/30/2018 0.94% 1.99%
+ RPRX 12/12/2017 Allergan plc (AGN) All Cash $13.26 million $0.67 $0.664 558,825 03/31/2018 0.90% 4.02%
+ CSBK 11/02/2017 Kearny Financial Corp. (KRNY) All Stock $408 million $16.97 $16.82 45,994 04/15/2018 0.90% 3.39%
+ DEL 10/23/2017 Potlatch Corporation (PCH) All Stock $1.18 billion $90.18 $89.55 216,836 06/30/2018 0.70% 1.48%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.35 2,313,614 03/31/2018 0.70% 3.13%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $37.39 $37.15 46,410 03/31/2018 0.65% 2.91%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.96 $24.80 26,450 01/31/2018 0.63% 10.01%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $54.25 $53.97 11,532 03/31/2018 0.52% 2.32%
+ BSFT 10/23/2017 Cisco (CSCO) All Cash $1.9 billion $55.00 $54.75 824,482 03/31/2018 0.46% 2.03%
+ ENZY 10/29/2017 Frutarom (N/A) All Cash $156.88 million $11.90 $11.85 54,658 01/15/2018 0.42% 22.00%
+ CUDA 11/27/2017 Thoma Bravo, LLC (N/A) All Cash $1.29 billion $27.55 $27.46 2,934,288 02/28/2018 0.33% 2.35%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.25 22,337 03/31/2018 0.29% 1.30%
+ AAAP 10/30/2017 Novartis AG (NVS) All Cash $3.9 billion $82.00 $81.85 256,460 03/31/2018 0.18% 0.82%
+ BWLD 11/28/2017 Arby�s Restaurant Group, Inc. (N/A) All Cash $2.9 billion $157.00 $156.75 516,816 03/31/2018 0.16% 0.71%
+ RGC 12/05/2017 Cineworld Group (N/A) All Cash $5.9 billion $23.00 $22.97 2,610,030 03/31/2018 0.13% 0.58%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.76 $10.75 70,189 03/31/2018 0.10% 0.46%
+ APLP 01/02/2018 Archrock, Inc. (AROC) All Stock $2.28 billion $13.51 $13.50 262,043 06/30/2018 0.07% 0.16%
+ AFAM 11/16/2017 LHC Group, Inc. (LHCG) All Stock $1.06 billion $58.87 $58.85 179,308 06/30/2018 0.04% 0.08%
+ BV 11/27/2017 entities affiliated with the global investment firm, Marlin Equity Partners (N/A) All Cash $398.69 million $5.50 $5.50 836,647 03/31/2018 0.00% 0.00%
+ RXDX 12/22/2017 Roche Holding AG (RHBBY) All Cash $1.7 billion $27.00 $27.00 3,465,645 06/30/2018 0.00% 0.00%
+ LNCE 12/18/2017 Campbell Soup Company (CPB) All Cash $5.8 billion $50.00 $50.01 1,720,615 05/15/2018 -0.02% -0.06%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $77.08 260,773 01/31/2018 -0.10% -1.65%
+ EXAC 10/23/2017 TPG Capital (N/A) All Cash $737 million $49.25 $49.35 39,993 03/31/2018 -0.20% -0.90%
+ TIME 11/26/2017 Meredith Corporation (MDP) All Cash $2.8 billion $18.50 $18.55 303,511 03/31/2018 -0.27% -1.20%
+ SCMP 12/26/2017 Mallinckrodt Public Limited Company (MNK) All Cash $1.2 billion $18.00 $18.05 4,925,371 03/31/2018 -0.28% -1.23%
+ ENTL 12/07/2017 Stryker Corporation (SYK) All Cash $662 million $24.00 $24.07 159,127 06/30/2018 -0.29% -0.61%
+ ALDW 11/08/2017 Delek US Holdings, Inc. (DK) All Stock $778.02 million $18.19 $18.25 139,000 03/31/2018 -0.31% -1.37%
+ CAA 10/30/2017 Lennar Corporation (LEN) All Stock $9.3 billion $59.81 $60.42 1,195,333 03/31/2018 -1.01% -4.51%
+ BETR 12/18/2017 The Hershey Company (HSY) All Cash $1.6 billion $12.00 $12.14 891,762 03/31/2018 -1.15% -5.13%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $12.06 $12.25 11,958 06/30/2018 -1.58% -3.34%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.63 $4.77 354,158 03/31/2018 -2.89% -12.87%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $24.30 299,921 01/17/2018 -5.35% -216.96%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $118.05 1,482,811 01/31/2018 -6.82% -108.22%
+ KND 12/19/2017 TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc. (HUM) All Cash $4.1 billion $9.00 $9.80 1,199,445 06/30/2018 -8.16% -17.22%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $8.00 66,286 01/31/2018 -12.50% -198.37%
+ FOX 12/14/2017 The Walt Disney Company (DIS) Special Conditions $66.1 billion $29.59 $36.35 4,369,671 09/30/2018 -18.60% -25.61%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $40.75 43,293 03/31/2018 -20.25% -90.12%

Disclaimer: I hold positions in Southcross Energy Partners (SXE), Sparton Corporation (SPA), Rosetta Genomics (ROSG) and Akorn (AKRX). 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
    January 8, 2018 at 6:50 am

    Might consider adding TIG to the list with Tekada agreeing to buy them.

    https://finance.yahoo.com/news/tigenix-skyrockets-acquisition-news-203408947.html

    • Asif Suria
      January 8, 2018 at 12:36 pm

      Thanks George. Our understanding of this deal was that Takeda has made a bid but the offer has not been officially approved. Reading through it again I see that the board approves of the offer and we will add it to our list.

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