Merger Arbitrage Mondays – August 20, 2018
Merger activity remained unchanged last week with three new deals announced and two pending deal closing less than two months after they were announced. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were three new deals announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2018 | 96 |
| Total Number of Deals Not Completed in 2018 | 11 |
| Total Number of Pending Deals |
| Cash Deals | 41 |
| Stock Deals | 16 |
| Stock & Cash Deals | 19 |
| Special Conditions | 6 |
| Total Number of Pending Deals | 82 |
| Total Deal Size | $1.11 trillion |
New Deals:
- The acquisition of Energen Corporation (EGN) by Diamondback Energy (FANG) for $9.2 billion in an all stock deal. Under the terms of the agreement, shareholders of Energen will receive 0.6442 shares of Diamondback common stock in exchange for each share of Energen common stock.
- The acquisition of KMG Chemicals (KMG) by Cabot Microelectronics Corporation (CCMP) for $1.6 billion in a cash plus stock deal. Under the terms of the agreement, KMG shareholders will be entitled to receive, per KMG share, $55.65 in cash and 0.2000 of a share of Cabot Microelectronics common stock.
- The acquisition of Zoe’s Kitchen (ZOES) by Cava Group for $300 million or $12.75 per share in cash.
Deal Updates:
- August 13, 2018: According to The Wall Street Journal, Carl Icahn no longer plans to solicit votes from Cigna(CI) shareholders against the health insurer’s deal to buy Express Scripts Holding (ESRX) after two proxy-advisory firms recommended shareholders support the deal.
- On August 14, 2018, The Special Committee of the Perry Ellis International (PERY) Board of Directors confirmed that it has terminated discussions with privately-held Randa Accessories Leather Goods with respect to its revised, non-binding, unsolicited proposal to acquire 100% of the outstanding common stock of Perry Ellis for $28.90 per share in cash.
- On August 14, 2018, Penn National Gaming (PENN) announced that at separate meetings, the Company received approvals from the Massachusetts Gaming Commission and the Texas Racing Commission in connection with its pending acquisition of Pinnacle Entertainment (PNK).
- On August 14, 2018, Genworth Financial (GNW) and China Oceanwide Holdings Group announced that they have agreed to a sixth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The sixth waiver and agreement extends the previous deadline of August 15, 2018 to December 1, 2018 to allow additional time to complete the regulatory review process.
- On August 16, 2018, Express Scripts (ESRX) reminded its stockholders to vote “FOR” Express Scripts’ merger agreement with Cigna (CI) at the Express Scripts’ upcoming Special Meeting of Stockholders to be held on August 24, 2018.
Closed Deals:
- The acquisition of Juniper Pharmaceuticals (JNP) by Catalent (CTLT) on August 14, 2018. It took 42 days for this deal to be completed.
- The acquisition of Xplore Technologies (XPLR) by Zebra Technologies Corporation (ZBRA) on August 14, 2018. It took 40 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| AKRX | 04/24/2017 | Fresenius Kabi (N/A) | $34.00 | $18.99 | 09/30/2018 | 79.04% | 703.66% |
| SCG | 01/03/2018 | Dominion Energy, Inc. (D) | $48.00 | $38.5 | 12/31/2018 | 24.68% | 67.72% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.52 | 12/01/2018 | 20.13% | 71.34% |
| SHPG | 05/08/2018 | Takeda Pharmaceutical Company Limited (TKPYY) | $194.74 | $170.42 | 06/30/2019 | 14.27% | 16.59% |
| RSYS | 07/02/2018 | Reliance Industries Limited (N/A) | $1.72 | $1.51 | 12/31/2018 | 13.91% | 38.17% |
| STC | 03/16/2018 | Fidelity National Financial, Inc. (FNF) | $50.66 | $44.63 | 06/30/2019 | 13.51% | 15.71% |
| RMGN | 04/03/2018 | SCG Digital, LLC (N/A) | $1.27 | $1.12 | 09/30/2018 | 13.39% | 119.23% |
| KANG | 03/26/2018 | IK Healthcare Investment Limited (N/A) | $20.60 | $18.57 | 09/30/2018 | 10.93% | 97.32% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $6.76 | $6.13 | 06/30/2019 | 10.26% | 11.92% |
| GGP | 03/26/2018 | Brookfield Property Partners (BPY) | $23.50 | $21.42 | 08/31/2018 | 9.71% | 322.21% |
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 Radisys (RSYS), SteadyMed (STDY), GGP Inc. (GGP) and magicJack VocalTec (CALL). 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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