Merger Arbitrage Mondays – December 10, 2018

Merger activity decreased last week with two 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 two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 160
Total Number of Deals Not Completed in 2018 14
Total Number of Pending Deals
Cash Deals 44
Stock Deals 32
Stock & Cash Deals 14
Special Conditions 6
Total Number of Pending Deals 96
Total Deal Size $1.37 trillion

New Deals:

  1. The acquisition of Tribune Media Company (TRCO) by Nexstar Media Group (NXST) for $6.4 billion or $46.50 per share in cash. We added TRCO as a potential deal to the Deals in the Works section on September 05, 2018 and the price after the news of the potential deal came out was $37.31.
  2. The acquisition of Tesaro (TSRO) by GlaxoSmithKline (GSK) for $5.1 billion or $75.00 per share in cash.

Deal Updates:

  1. On November 30, 2018, Genworth Financial (GNW) and China Oceanwide Holdings Group entered into a Seventh Waiver and Agreement pursuant to which they agreed to extend the end date to January 31, 2019.
  2. On December 4, 2018, InfraREIT (HIFR) announced that the third party that previously submitted a preliminary and non-binding proposal to acquire the Company has terminated discussions and is no longer considering a potential transaction with the Company.
  3. On December 4, 2018, Navios Maritime Acquisition Corporation (NNA) and Navios Maritime Midstream Partners (NAP) announced that the deadline for public unitholders of Navios Midstream to elect the form of consideration they wish to receive in the Transaction is on December 10, 2018.
  4. On December 4, 2018, Takeda Pharmaceutical won approval from shareholders for its bid for Shire (SHPG).
  5. On December 6, 2018, Beneficial Bancorp (BNCL) announced that its stockholders approved the previously announced merger of Beneficial with and into WSFS Financial Corporation (WSFS).
  6. On December 6, 2018, Lumentum Holdings (LITE) announced that it has obtained antitrust clearance from the People’s Republic of China’s State Administration for Market Regulation. Lumentum currently expects that the Oclaro (OCLR) acquisition will close on or around December 10, 2018.
  7. On December 6, 2018, Hydro One Limited and Avista Corporation (AVAreceived a regulatory decision from the Washington Utilities and Transportation Commission (UTC), denying the proposed merger of the two companies.
  8. On December 7, 2018, Cadence Bancorporation (CADE) announced that it has received regulatory approval from the Federal Reserve to complete its pending transaction with State Bank Financial Corporation (STBZ).
  9. On December 7, 2018, Synovus Financial (SNV) and FCB Financial Holdings (FCB) jointly announced that Synovus has received regulatory approval from the Federal Reserve Board and the Georgia Department of Banking and Finance to complete the merger with FCB Financial Holdings.

Closed Deals:

  1. The acquisition of SodaStream International (SODA) by PepsiCo (PEP) on December 5, 2018. It took 107 days for this deal to be completed.
  2. The acquisition of American Railcar Industries (ARII) by a wholly-owned subsidiary of ITE Rail Fund on December 5, 2018. It took 44 days for this deal to be completed.
  3. The acquisition of JetPay Corporation (JTPY) by NCR Corporation (NCR) on December 6, 2018. It took 45 days for this deal to be completed.
  4. The acquisition of Ocean Rig UDW (ORIG) by Transocean (RIG) on December 6, 2018. It took 93 days for this deal to be completed.
  5. The acquisition of Sonic (SONC) by Inspire Brands on December 7, 2018. It took 73 days for this deal to be completed.
  6. The acquisition of Poage Bankshares (PBSK) by City Holding Company (CHCO) on December 7, 2018. It took 149 days for this deal to be completed.
  7. The acquisition of Forest City Realty Trust (FCE-A) by Brookfield Asset Management (BAM) on December 7, 2018. It took 129 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
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $1.13 03/31/2019 96.46% 317.19%
EHIC 04/06/2018 Teamsport Parent Limited (N/A) $13.50 $10.15 12/31/2018 33.00% 573.66%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.33 01/31/2019 25.40% 178.32%
AVA 07/19/2017 Hydro One Limited (N/A) $53.00 $43.89 03/29/2019 20.76% 69.51%
KANG 03/26/2018 IK Healthcare Investment Limited (N/A) $20.60 $17.75 12/31/2018 16.06% 279.07%
PGLC 09/30/2018 Americas Silver Corporation (USAS) $1.00 $0.87 03/31/2019 15.47% 50.86%
DVMT 07/02/2018 Dell (N/A) $120.00 $104 12/31/2018 15.38% 267.40%
NAP 10/08/2018 Navios Maritime Acquisition Corporation (NNA) $2.81 $2.45 12/31/2018 14.86% 258.23%
TAHO 11/14/2018 Pan American Silver Corp. (PAAS) $4.10 $3.57 03/31/2019 14.85% 48.82%
SHPG 05/08/2018 Takeda Pharmaceutical Company Limited (TKPYY) $194.74 $172.75 01/08/2019 12.73% 160.21%

List of all pending deals:

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

Disclaimer: I hold positions in Finisar (FNSR), Pandora (P) and Radisys (RSYS). 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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