Merger Arbitrage Mondays – April 9, 2018

Merger activity decreased last week with two 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 were no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 41
Total Number of Deals Not Completed in 2018 5
Total Number of Pending Deals
Cash Deals 42
Stock Deals 13
Stock & Cash Deals 14
Collars 1
Special Conditions 6
Total Number of Pending Deals 75
Total Deal Size $725.94 billion

New Deals:

  1. The acquisition of RMG Networks Holding Corporation (RMGN) by SCG Digital for $16.8 million or $1.27 per share in cash.
  2. The acquisition of AveXis (AVXS) by Novartis (NVS) for $8.7 billion or $218 per share in cash.

Deal Updates:

  1. On April 3, 2018, EU antitrust regulators set a May 8 deadline to decide whether to allow Italian cable maker Prysmian’s $3 billion acquisition of U.S. peer General Cable (BGC). The takeover gained unconditional clearance in the United States on March 9.
  2. On April 3, 2018, Avista Corporation (AVA) and Hydro One Limited filed a settlement agreement in the merger proceeding before the Regulatory Commission of Alaska (RCA) recommending approval of the acquisition of the Company by Hydro One and on April 6, 2018, Hydro One Limited and Avista Corporation announced that the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for the merger of the two companies expired on April 5, 2018.
  3. On April 4, 2018, The U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, as amended, with respect to the proposed acquisition of Oclaro (OCLR) by Lumentum Holdings (LITE). The transactions contemplated by the Merger Agreement remain subject to approval by Oclaro’s stockholders, antitrust regulatory approval in China and other customary closing conditions.
  4. On April 4, 2018,  The Maryland Public Service Commission announced its approval of the combination of WGL Holdings (WGL) with AltaGas. With the favorable decision in Maryland, the companies now have one remaining regulatory review to complete in the District of Columbia. A final decision from the DC PSC is expected in mid-2018.
  5. On April 5, 2018, Kindred Healthcare (KND) announced that at its special meeting of stockholders, stockholders approved the transaction with affiliates of TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM).
  6. On April 6, 2018, Albertsons Companies filed to withdraw its plan for an initial public offering, because of its deal to merge with Rite Aid (RAD).
  7. On April 6, 2018, Qualcomm Incorporated (QCOM) announced that it 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 April 13, 2018, unless extended or earlier terminated.

Closed Deals:

  1. The acquisition of Clifton Bancorp (CSBK) by Kearny Financial (KRNY) on April 2, 2018. It took 151 days for this deal to be completed.
  2. The acquisition of MainSource Financial Group (MSFG) by First Financial Bancorp (FFBC) on April 2, 2018. It took 251 days for this deal to be completed.
  3. The acquisition of CSRA (CSRA) by General Dynamics (GD) on April 3, 2018. It took 50 days for this deal to be completed.
  4. The acquisition of Callidus Software (CALD) by SAP SE (SAP) on April 5, 2018. It took 66 days for this deal to be completed.
  5. The acquisition of Fogo de Chao (FOGO) by Rhône Capital on April 5, 2018. It took 44 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 $2.75 07/01/2018 97.45% 428.57%
AVXS 04/08/2018 Novartis AG (NVS) $218.00 $115.91 06/30/2018 88.08% 392.05%
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $18.39 04/30/2018 84.88% 1475.35%
RAD 02/18/2018 Albertsons Companies, Inc. (N/A) $2.50 $1.61 09/30/2018 55.28% 115.96%
ESRX 03/08/2018 Cigna Corporation (CI) $89.60 $67.88 12/31/2018 31.99% 43.90%
SCG 01/03/2018 Dominion Energy, Inc. (D) $44.30 $37.47 12/31/2018 18.23% 25.02%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $25.52 09/30/2018 17.55% 36.82%
AET 12/03/2017 CVS Health (CVS) $198.10 $170.38 12/31/2018 16.27% 22.32%
GGP 03/26/2018 Brookfield Property Partners (BPY) $23.50 $20.25 07/31/2018 16.05% 51.84%
STC 03/16/2018 Fidelity National Financial, Inc. (FNF) $49.75 $43.97 06/30/2019 13.14% 10.73%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium members.

Disclaimer: I hold positions in GGP Inc. (GGP), magicJack VocalTec (CALL), Monsanto (MON), Rite Aid (RAD) and Southcross Energy Partners (SXE). 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

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