Merger Arbitrage Mondays – March 18, 2019

Merger activity increased last week with three 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.

There were two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 51
Total Number of Deals Not Completed in 2019 1
Total Number of Pending Deals
Cash Deals 29
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 5
Total Number of Pending Deals 64
Total Deal Size $698.75 billion

New Deals:

  1. The acquisition of Mellanox Technologies (MLNX) by NVIDIA Corporation (NVDA) for $6.9 billion or $125 per share in cash.
  2. The acquisition of Osiris Therapeutics (OSIR) by Smith & Nephew (SNN) for $660.5 million or $19.00 per share in cash.
  3. The acquisition of Pointer Telocation (PNTR) by I.D. Systems (IDSY) for $140 million in a cash plus stock deal. Under the terms of the agreement, Pointer shareholders will receive $8.50 in cash and 1.272 shares of PowerFleet common stock for each share of Pointer common stock they own.

Deal Updates:

  1. On March 11, 2019, eHi Car Services Limited (EHIC) announced that it has called an extraordinary general meeting of shareholders to be held on April 8, 2019.
  2. On March 11, 2019, Entegris (ENTG) and Versum Materials (VSM) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the previously-announced merger of equals between the two companies.
  3. March 11, 2019, According to Bloomberg, Barrick Gold (GOLD) may have withdrawn its pursuit of rival Newmont Mining (NEM), but the hostile-takeover bid did yield a big prize: Control over the largest single gold mining operation in the world.
  4. March 12, 2019: According to the Wall Street Journal, Walt Disney (DIS) expects to close its acquisition of major assets of 21st Century Fox (FOX) on March 20.
  5. On March 12, 2019, Tribune Media Company (TRCO) announced that the stockholders of the Company voted overwhelmingly to approve the Company’s previously announced acquisition by Nexstar Media Group (NXST).
  6. On March 13, 2019, Mexico’s telecoms regulator approved Walt Disney’s (DIS) purchase of Twenty-First Century Fox (FOX).
  7. On March 14, 2019, Genworth Financial (GNW) and China Oceanwide Holdings announced that they have agreed to a ninth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The ninth waiver and agreement extends the previous deadline of March 15, 2019 to April 30, 2019 in consideration of pending regulatory reviews.
  8. March 14, 2019: According to Reuters, the U.S. Federal Reserve said that it will hold two public hearings related to BB&T’s (BBT) proposal to acquire SunTrust Banks (STI).
  9. On March 15, 2019, The Walt Disney Company (DIS) and Twenty-First Century Fox (FOXannounced the preliminary results of the elections made by 21CF stockholders regarding the form of consideration they wish to receive in exchange for their shares of 21CF common stock in the Acquisition. 51.57% elected to receive cash; 36.65% elected to receive shares of common stock of New Disney; and 11.79% did not make an election.

Closed Deals:

  1. The acquisition of Antero Midstream Partners (AM) by Antero Midstream (AMGP) on March 12, 2019. It took 154 days for this deal to be completed.
  2. The acquisition of Esterline Technologies Corporation (ESL) by TransDigm Group Incorporated (TDG) on March 14, 2019. It took 155 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 $1.31 06/30/2019 69.47% 243.80%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4 04/30/2019 35.75% 303.46%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.53 $6.39 06/30/2019 17.90% 62.84%
CELG 01/03/2019 Bristol-Myers Squibb Company (BMY) $99.96 $88.46 09/30/2019 13.00% 24.21%
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $47.53 $42.34 06/30/2019 12.26% 43.04%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $7.36 06/30/2019 8.70% 30.52%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $7.56 $7 06/30/2019 8.04% 28.20%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $117.97 12/31/2019 5.96% 7.55%
RHT 10/28/2018 IBM (IBM) $190.00 $181.78 12/31/2019 4.52% 5.73%
CTWS 03/15/2018 SJW Group (SJW) $70.00 $67 03/31/2019 4.48% 125.72%

List of all pending deals:

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

Disclaimer: I hold a long positions in Celgene (CELG), Bristol-Myers Squibb (BMY) and Finisar (FNSR). 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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