Merger Arbitrage Mondays – December 24, 2018

Merger activity decreased last week with two new deals announced, eight pending deals closing and one deal terminated. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There was one new deal announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 173
Total Number of Deals Not Completed in 2018 15
Total Number of Pending Deals
Cash Deals 41
Stock Deals 29
Stock & Cash Deals 13
Special Conditions 6
Total Number of Pending Deals 89
Total Deal Size $1.38 trillion

New Deals:

  1. The acquisition of Fidelity Southern Corporation (LION) by Ameris Bancorp (ABCB) for $750.7 million in an all stock deal. Under the terms of the definitive merger agreement, each share of Fidelity common stock, including restricted shares, will be converted into the right to receive 0.80 shares of Ameris common stock.
  2. The acquisition of Civitas Solutions (CIVI) by funds advised by Centerbridge Partners for $1.4 billion or $17.75 per share in cash. We added CIVI as a potential deal to the Deals in the Works section on October 05, 2018 and the price after the news of the potential deal came out was $16.06.

Deal Updates:

  1. On December 17, 2018, Independent Bank Group (IBTX) announced that it has received all regulatory approvals necessary to complete its merger with Guaranty Bancorp (GBNK) by January 1, 2019.
  2. On December 17, 2018, The Royal Court of Jersey sanctioned the scheme of arrangement which will give effect to the merger of Randgold Resources (GOLD) and Barrick Gold (ABX).
  3. On December 17, 2018, T-Mobile US (TMUS) and Sprint Corporation (S) announced that the companies have successfully received approval from the Committee on Foreign Investment in the United States (CFIUS) for their proposed merger transaction. Additionally, the U.S. Department of Justice, Department of Homeland Security, and Department of Defense confirmed it has no objections to the merger and has withdrawn its request to defer action on the transaction.
  4. On December 17, 2018, Hydro One Limited (H) and Avista Corporation (AVAfiled a petition requesting that the Washington Utilities and Transportation Commission reconsider its December 5, 2018 order denying approval of Hydro One’s acquisition of Avista, together with a petition requesting that the UTC rehear the matter to accept new evidence.
  5. December 18, 2018: According to The Wall Street Journal, Rent-A-Center (RCII) said it terminated its agreement to be acquired by Vintage Capital Management after the investment firm didn’t extend the deal’s deadline.
  6. On December 21, 2018, Select Income REIT (SIR) shareholders approved the merger of SIR with Government Properties Income Trust (GOV).
  7. On December 21, 2018, Genworth Financial (GNW) and China Oceanwide Holdings Group announced that the Delaware Department of Insurance has approved the proposed acquisition of control by Oceanwide of Genworth’s Delaware-domiciled insurance company. In addition, Fannie Mae and Freddie Mac have approved Oceanwide’s control of Genworth Mortgage Insurance Corporation. Approval from regulators in Australia and New Zealand was also recently received for the proposed transaction.

Closed Deals:

  1. The acquisition of Spectra Energy Partners (SEP) by Enbridge (ENB) on December 17, 2018.  It took 115 days for this deal to be completed.
  2. The acquisition of Cambium Learning Group (ABCD) by affiliates of Veritas Capital on December 18, 2018. It took 64 days for this deal to be completed.
  3. The acquisition of Mazor Robotics (MZOR) by Medtronic (MDT) on December 19, 2018. It took 89 days for this deal to be completed.
  4. The acquisition of Express Scripts Holding Company (ESRX) by Cigna Corporation (CI) on December 20, 2018. It took 287 days for this deal to be completed.
  5. The acquisition of Enbridge Energy Management (EEQ) by Enbridge (ENB) on December 20, 2018. It took 93 days for this deal to be completed.
  6. The acquisition of Enbridge Energy Partners (EEP) by Enbridge (ENB) on December 20, 2018. It took 93 days for this deal to be completed.
  7. The acquisition of Endocyte (ECYT) by Novartis AG on December 20, 2018.  It took 63 days for this deal to be completed.
  8. The acquisition of XO Group (XOXO) by WeddingWire on December 21, 2018. It took 87 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 $1.02 03/31/2019 117.65% 442.69%
EHIC 04/06/2018 Teamsport Parent Limited (N/A) $13.50 $9.47 12/31/2018 42.56% 2218.96%
AVA 07/19/2017 Hydro One Limited (N/A) $53.00 $43.86 03/29/2019 20.84% 80.07%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.51 01/31/2019 20.40% 195.94%
TAHO 11/14/2018 Pan American Silver Corp. (PAAS) $4.10 $3.5 03/31/2019 17.14% 64.51%
DVMT 07/02/2018 Dell (N/A) $120.00 $102.73 12/31/2018 16.81% 876.58%
SHPG 05/08/2018 Takeda Pharmaceutical Company Limited (TKPYY) $194.74 $170.03 01/08/2019 14.53% 353.63%
ORBK 03/19/2018 KLA-Tencor Corporation (KLAC) $60.28 $54.7 12/31/2018 10.20% 531.68%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $6.35 $5.79 06/30/2019 9.70% 18.83%
RHT 10/28/2018 IBM (IBM) $190.00 $173.47 12/31/2019 9.53% 9.35%

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) and Pandora (P). 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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