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:
- 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.
- 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.
- The acquisition of Presidio (PSDO) by funds advised by BC Partners for $2.1 billion or $16.00 per share in cash.
- 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:
- 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.
- 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:
Closing
Price |
|---|
| 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.
Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria
