Merger Arbitrage Mondays – CBS Corporation acquires Viacom

Merger activity decreased last week with four new deals announced. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

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

Deal Statistics:

Total Number of Deals Closed in 2019 120
Total Number of Deals Not Completed in 2019 8
Total Number of Pending Deals
Cash Deals 46
Stock Deals 16
Stock & Cash Deals 14
Special Conditions 5
Total Number of Pending Deals  81
Aggregate Deal Consideration  $1.12 trillion

New Deals:

  1. The acquisition of Alcentra Capital Corporation (ABDC) by Crescent Capital BDC for $141.9 million or approximately $11.02 per share in cash. Alcentra Capital’s stockholders will receive approximately (i) $19.3 million in cash, or $1.50 per share, from Crescent BDC; (ii) 5.2 million shares of Crescent BDC common stock; and (iii) $21.6 million in cash, or $1.68 per share, from CBDC Advisors, LLC, Crescent BDC’s investment adviser (“Crescent Cap Advisors”). Since the deal value is uncertain, we are treating this as a “Special Conditions” deal in our Merger Arbitrage Tool.
  2. The acquisition of Viacom (VIAB) by CBS Corporation (CBS) for $20.38 billion in an all stock deal. Under the terms of the agreement, each Viacom class A voting share and Viacom Class B non-voting share will convert into 0.59625 of a Class A voting share and Class B non-voting share of CBS, respectively.
  3. The acquisition of Presidio (PSDO) by funds advised by BC Partners for $2.1 billion or $16.00 per share in cash.
  4. The acquisition of Bancorp Of New Jersey (BKJ) by ConnectOne Bancorp (CNOB) for $113 million in a cash or stock deal. Under the terms of the agreement, Bancorp of New Jersey shareholders will have the right to receive, for each share of Bancorp of New Jersey common stock either 0.78 shares of ConnectOne common stock or $16.25 in cash.

Deal Updates:

  1. On August 12, 2019, UGI Corporation (UGI) and AmeriGas Partners (APU) announced that, in connection with UGI’s proposed merger between a subsidiary of UGI and AmeriGas, the deadline for record holders of AmeriGas common units to elect the form of consideration they wish to receive in connection with the merger, is August 20, 2019.
  2. On August 13, 2019, Genworth Financial (GNW) and Brookfield Business Partners (BBU) announced an agreement for Brookfield Business Partners to purchase Genworth’s majority interest in Genworth MI Canada. In connection with Oceanwide’s consent to the Transaction, Genworth and Oceanwide entered into the 12th Waiver and Agreement extending the merger agreement deadline to not later than December 31, 2019.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $53.42 $36.09 09/30/2019 48.01% 417.25%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $5.76 12/31/2019 38.89% 105.93%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.31 12/31/2019 25.99% 70.78%
ABDC 08/13/2019 Crescent Capital BDC, Inc. (N/A) $11.02 $8.84 12/31/2019 24.66% 67.17%
OHAI 08/01/2019 Portman Ridge Finance Corporation (PTMN) $1.46 $1.24 12/31/2019 17.74% 48.33%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.97 $6.91 08/31/2019 15.40% 468.37%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $108.54 12/31/2019 15.16% 41.31%
AVP 05/22/2019 Natura Cosméticos S.A. (NATU3.SA) $4.76 $4.16 01/31/2020 14.43% 31.91%
ONCE 02/25/2019 Roche Holding AG (RHHBY) $114.50 $100.57 04/30/2020 13.85% 19.83%

List of all pending deals:

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

Disclaimer: I hold long positions in Mellanox Technologies (MLNX), Pacific Biosciences of California (PACB), 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.

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