Merger Arbitrage Mondays – September 10, 2018
Merger activity increased last week with four new deals announced and three 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 two new deals announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Ocean Rig UDW (ORIG) by Transocean (RIG) for $2.7 billion in a cash plus stock deal. Under the terms of the agreement, Ocean Rig UDW shareholders will receive 1.6128 newly issued shares of Transocean plus $12.75 in cash for each share of Ocean Rig’s common stock, for a total implied value of $32.28 per Ocean Rig share, based on the closing price on August 31, 2018. We added ORIG as a potential deal to the Deals in the Works section on December 20, 2017 and the price after the news of the potential deal came out was $26.06.
- The acquisition of Nevsun Resources (NSU) by Zijin Mining Group for C$1.86 billion (US$1.41 billion) or C$6.00 per share in cash. We added NSU as a potential deal to the Deals in the Works section on July 16, 2018 and the price after the news of the potential deal came out was $3.29.
- The acquisition of LaSalle Hotel Properties (LHO) by Pebblebrook Hotel Trust (PEB) for $5.2 billion in a cash or stock deal. Under the terms of the agreement, each LaSalle shareholder will have the option to elect to receive for each LaSalle common share owned either a) a fixed amount of $37.80 in cash or b) a fixed exchange ratio of 0.92 Pebblebrook common share. A maximum of 30% of outstanding LaSalle common shares may be exchanged for cash, subject to pro rata cut backs. We added LHO as a potential deal to the Deals in the Works section on March 28, 2018 and the price after the news of the potential deal came out was $27.95. For purposes of the Merger Arbitrage Tool, we are going to treat this as an all stock deal.
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