Merger Arbitrage Mondays – September 24, 2018
Merger activity increased last week with nine new deals announced and two 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. For folks who were long SteadyMed (STDY), brokers have started sending out letters with the form you can fill out to make sure 25% of the amount due is not withheld for taxes according to Israeli law. If and when the magicJack VocalTec (CALL) acquisition closes, you can expect to receive a similar form.
There was one new deal announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Select Income REIT (SIR) by Government Properties Income Trust (GOV) for $6.17 billion in an all stock deal. The merger will be a stock for stock exchange whereby SIR shareholders will receive 1.04 shares of GOV for each common share of SIR based upon a fixed exchange ratio. Also as a condition of the merger, after receiving shareholder approval for the merger and prior to its closing, SIR will distribute as a special dividend all 45 million of the common shares it owns in ILPT to SIR shareholders. SIR shareholders will receive approximately 0.502 shares of ILPT for every one share owned of SIR. Based upon closing prices on September 14, 2018, SIR shareholders will receive $11.69 per share from the ILPT share distribution and $17.57 per share in GOV for a total of $29.26 per share. After the deal was announced, both GOV and ILPT declined sharply because the dividends of both companies will be cut post-merger. So the deal is currently not worth anywhere near the $29.26/share indicated after the deal was announced. We are treating this as a special conditions deal.
- The acquisition of Nexeo Solutions (NXEO) by Univar (UNVR) for $2 billion in a cash plus stock deal. Under the terms of the agreement, each share of Nexeo stock issued and outstanding will be converted into 0.305 shares of Univar common stock and $3.29 in cash.
- The acquisition of Senomyx (SNMX) by Firmenich for $51.57 million or $1.50 per share in cash.
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