Merger Arbitrage Mondays – December 3, 2018
Merger activity increased last week with six new deals announced and six 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 was one new deal announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2018 | 153 |
| Total Number of Deals Not Completed in 2018 | 14 |
| Total Number of Pending Deals |
| Cash Deals | 47 |
| Stock Deals | 33 |
| Stock & Cash Deals | 15 |
| Special Conditions | 6 |
| Total Number of Pending Deals | 101 |
| Total Deal Size | $1.36 trillion |
New Deals:
- The acquisition of National Commerce Corporation (NCOM) by CenterState Bank Corporation (CSFL) for $850.4 million in an all stock deal. Under the terms of the agreement, National Commerce shareholders will receive 1.65 shares of CSFL common stock for each outstanding share of National Commerce common stock.
- The acquisition of Transmontaigne Partners (TLP) by ArcLight Energy Partners for $536 million or $41.00 per share in cash.
- The acquisition of Dominion Energy Midstream Partners (DM) by Dominion Energy (D) for $2.34 billion in an all stock deal. Under the terms of the agreement, Dominion Energy will acquire all outstanding public common units of Dominion Energy Midstream in exchange for 0.2492 Dominion Energy common shares per unit.
- The acquisition of BSB Bancorp (BLMT) by People’s United Financial (PBCT) for $327 million in an all stock deal. Under the terms of the agreement, BSB Bancorp stockholders will receive 2 shares of People’s United Financial stock for each BSB Bancorp share.
- The acquisition of Gaming Partners International Corporation (GPIC) by Angel Holdings Godo Kaisha for $110 million or $13.75 per share in cash.
- The acquisition of EQGP Holdings (EQGP) by Equitrans Midstream Corporation (ETRN) for $7.12 billion or $20.00 per share in cash.
Deal Updates:
- On November 26, 2018, Imperva (IMPV) announced the expiration of the 45-day go-shop period included in the previously announced merger agreement with Thoma Bravo.
- On November 29, 2018, Ocean Rig UDW (ORIG) announced that its shareholders have approved the merger of the company with Transocean.
- On November 29, 2018, iKang Healthcare Group (KANG), announced that its board of directors has unanimously approved the extension of its Rights Agreement, presently scheduled to expire on December 2, 2018, for another year.
- On November 30, 2018, Radisys Corporation (RSYS) announced that the Committee on Foreign Investment in the United States (CFIUS) completed its review of the planned acquisition of the Company by Reliance Industries (RIL). The parties expect to consummate the merger on December 7, 2018 or on such other date as the parties mutually agree.
- On November 30, 2018, Oncor Electric Delivery Company filed a Sale, Transfer, Merger (STM) application with the Public Utility Commission of Texas (PUCT) as part of its proposed purchase of InfraREIT (HIFR).
Closed Deals:
- The acquisition of Rockwell Collins (COL) by United Technologies (UTX) on November 26, 2018. It took 448 days for this deal to be completed.
- The acquisition of Corium International (CORI) by Gurnet Point Capital on November 27, 2018. It took 47 days for this deal to be completed.
- The acquisition of Aetna (AET) by CVS Health (CVS) on November 28, 2018. It took 360 days for this deal to be completed.
- The acquisition of AmTrust Financial Services (AFSI) by Karfunkel-Zyskind Family on November 29, 2018. It took 273 days for this deal to be completed.
- The acquisition of Energen Corporation (EGN) by Diamondback Energy (FANG) on November 29, 2018. It took 107 days for this deal to be completed.
- The acquisition of LaSalle Hotel Properties (LHO) by Pebblebrook Hotel Trust (PEB) on November 30, 2018. It took 85 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| INUV | 11/05/2018 | ConversionPoint Technologies, Inc. (N/A) | $2.22 | $1.13 | 03/31/2019 | 96.46% | 298.37% |
| EHIC | 04/06/2018 | Teamsport Parent Limited (N/A) | $13.50 | $10.3 | 12/31/2018 | 31.07% | 404.99% |
| NAP | 10/08/2018 | Navios Maritime Acquisition Corporation (NNA) | $2.88 | $2.39 | 12/31/2018 | 20.55% | 267.91% |
| TAHO | 11/14/2018 | Pan American Silver Corp. (PAAS) | $4.10 | $3.51 | 03/31/2019 | 16.81% | 51.99% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.66 | 12/01/2018 | 16.52% | -3015.56% |
| KANG | 03/26/2018 | IK Healthcare Investment Limited (N/A) | $20.60 | $17.86 | 12/31/2018 | 15.34% | 199.99% |
| DVMT | 07/02/2018 | Dell (N/A) | $120.00 | $105.48 | 12/31/2018 | 13.77% | 179.44% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $7.02 | $6.28 | 06/30/2019 | 11.79% | 20.59% |
| SHPG | 05/08/2018 | Takeda Pharmaceutical Company Limited (TKPYY) | $194.74 | $175.58 | 01/08/2019 | 10.91% | 110.64% |
| STC | 03/16/2018 | Fidelity National Financial, Inc. (FNF) | $46.59 | $42.06 | 06/30/2019 | 10.77% | 18.80% |
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 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
