Merger Arbitrage Mondays – July 9, 2018

Merger activity decreased last week with three new deals announced and seven 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 81
Total Number of Deals Not Completed in 2018 6
Total Number of Pending Deals
Cash Deals 42
Stock Deals 14
Stock & Cash Deals 18
Special Conditions 9
Total Number of Pending Deals 83
Total Deal Size $1.03 trillion

New Deals:

  1. The acquisition of Radisys Corporation (RSYS) by Reliance Industries Limited for $100.94 million or $1.72 per share in cash.
  2. The acquisition of Juniper Pharmaceuticals (JNP) by Catalent (CTLT) for $111.22 million or $11.50 per share in cash.
  3. The acquisition of Xplore Technologies (XPLR) by Zebra Technologies Corporation (ZBRA) for $83.96 million or $6.00 per share in cash.

Deal Updates:

  1. On June 25, 2018, SteadyMed (STDY) issued a notice that an extraordinary general meeting of shareholders of SteadyMed will be held at the offices of SteadyMed Therapeutics on July 30, 2018.
  2. On July 2, 2018, The Special Committee of the Perry Ellis International (PERY) Board of Directors confirmed receipt of a non-binding, unsolicited proposal from privately-held Randa Accessories Leather Goods to acquire 100% of the fully diluted common stock of Perry Ellis for $28.00 per share in cash.
  3. On July 3, 2018, ILG (ILG) announced that it will hold a special meeting of its stockholders on August 28, 2018, at which ILG stockholders will vote on the previously announced proposed merger of ILG and Marriott Vacations Worldwide Corporation (VAC).
  4. On July 3, 2018, Marathon Petroleum (MPC) and Andeavor (ANDV) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired in connection with the proposed transaction whereby MPC would acquire all of Andeavor’s outstanding shares. The parties have also received the necessary regulatory clearance by the Canadian Commissioner of Competition pursuant to the Competition Act (Canada).
  5. On July 6, 2018, 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 July 13, 2018, unless extended or earlier terminated.
  6. On July 6, 2018, Zoetis (ZTS) and Abaxis (ABAX) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with Zoetis’ previously-announced acquisition of Abaxis.
  7. On July 6, 2018, Takeda Pharmaceutical Company Limited and TiGenix (TIG) announced the results of the second acceptance period of Takeda’s previously announced tender offer in cash for all outstanding ordinary shares of TiGenix. The number of Securities tendered into the Bid, gives access to 96.03% of the voting rights given access to by all of the outstanding Securities on a fully diluted basis. Following settlement of the Securities, Takeda will own 96.08% of the outstanding Ordinary Shares and will have acquired 95.76% of the Ordinary Shares that were the subject of the Bid. The conditions for a simplified squeeze-out under Belgian law have therefore been met. The squeeze-out period will commence from July 6, 2018, and will expire on July 26, 2018.

Closed Deals:

  1. The acquisition of Infinity Property (IPCC) by Casualty Corporation (KMPR) on July 2, 2018. It took 136 days for this deal to be completed.
  2. The acquisition of Kindred Healthcare (KND) by TPG Capital, Welsh, Carson, Anderson & Stowe and Humana on July 2, 2018. It took 195 days for this deal to be completed.
  3. The acquisition of Tallgrass Energy Partners (TEP) by Tallgrass Energy GP (TEGP) on June 30, 2018. It took 96 days for this deal to be completed.
  4. The acquisition of Hawaiian Telcom Holdco (HCOM) by Cincinnati Bell (CBB) on July 2, 2018. It took 367 days for this deal to be completed.
  5. The acquisition of Cavium (CAVM) by Marvell Technology Group (MRVL) on July 6, 2018. It took 228 days for this deal to be completed.
  6. The acquisition of FNB Bancorp (FNBG) by TriCo Bancshares (TCBK) on July 6, 2018. It took 206 days for this deal to be completed.
  7. The acquisition of WGL Holdings (WGL) by AltaGas on July 6, 2018. It took 527 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $18.07 07/31/2018 88.16% 1462.61%
RAD 02/18/2018 Albertsons Companies, Inc. (N/A) $2.50 $1.74 09/30/2018 43.68% 192.08%
NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) $127.50 $107.47 07/13/2018 18.64% 1700.70%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.58 08/15/2018 18.56% 183.08%
SCG 01/03/2018 Dominion Energy, Inc. (D) $46.84 $40.63 12/31/2018 15.29% 31.90%
SHPG 05/08/2018 Takeda Pharmaceutical Company Limited (TKPYY) $194.74 $170.47 06/30/2019 14.24% 14.60%
CTWS 03/15/2018 SJW Group (SJW) $76.54 $67.07 12/31/2018 14.12% 29.46%
RSYS 07/02/2018 Reliance Industries Limited (N/A) $1.72 $1.51 12/31/2018 13.91% 29.01%
ESRX 03/08/2018 Cigna Corporation (CI) $90.64 $80.07 12/31/2018 13.20% 27.53%
GGP 03/26/2018 Brookfield Property Partners (BPY) $23.50 $20.84 07/31/2018 12.76% 211.76%

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 SteadyMed (STDY), GGP Inc. (GGP), magicJack VocalTec (CALL), 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.

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