Merger Arbitrage Mondays – April 30, 2018
Merger activity increased last week with seven new deals announced and five pending 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 was one new deal announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Vectren Corporation (VVC) by CenterPoint Energy (CNP) for $8.12 billion or $72.00 per share in cash. We added VVC as a potential deal to the Deals in the Works section on August 22, 2017 and the price after the news of the potential deal came out was $65.25.
- The acquisition of Charter Financial Corporation (CHFN) by CenterState Bank Corporation (CSFL) for $360.1 million in a cash plus stock deal. Under the terms of the agreement, Charter stockholders will receive 0.738 of a share of CSFL common stock and $2.30 in cash consideration for each outstanding share of Charter common stock.
- The acquisition of CYS Investments (CYS) by Two Harbors Investment (TWO) for $1.33 billion. In connection with the merger, CYS stockholders will exchange their shares of CYS common stock for newly issued shares of Two Harbors common stock as well as aggregate cash consideration of $15,000,000. The number of Two Harbors shares issued will be based on an exchange ratio to be determined by dividing 96.75% of CYS’ adjusted book value per share by 94.20% of Two Harbors’ adjusted book value per share. For illustrative purposes, assuming the merger occurs and the exchange ratio was based on March 31, 2018 adjusted book value per share, CYS stockholders would receive $7.79 of combined cash and stock consideration per share of CYS common stock owned, which represents a premium of approximately 17.7% over the CYS closing price per share on April 25, 2018. The actual exchange ratio for the merger will be publicly announced at least five business days prior to the required stockholder votes on the merger. We are treating this a “Special Conditions” deal with a deal value of $7.79/share.
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