Merger Arbitrage Mondays – DryShips Goes Private In A Management Buyout

Merger activity remained unchanged last week with four new deals announced and one deal 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 no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 121
Total Number of Deals Not Completed in 2019 8
Total Number of Pending Deals
Cash Deals 50
Stock Deals 16
Stock & Cash Deals 13
Special Conditions 5
Total Number of Pending Deals 84
Aggregate Deal Consideration $1.13 trillion

New Deals:

  1. The acquisition of DryShips (DRYS) in a going private transaction for $915.73 million or $5.25 per share in cash. We added DRYS as a potential deal to the Deals in the Works section on June 13, 2019 and the price after the news of the potential deal came out was $3.88.
  2. The acquisition of Empire Resorts (NYNY) by Kien Huat Realty III Limited and Genting Malaysia Berhad for $1.03 billion or $9.74 per share in cash. We added NYNY as a potential deal to the Deals in the Works section on August 6, 2019 and the price after the news of the potential deal came out was $9.28.
  3. The acquisition of Pivotal Software (PVTL) by VMware (VMW) for $2.7 billion. Under the terms of the transaction,  Pivotal’s Class A common stockholders will receive $15.00 per share cash for each share held, and  Pivotal’s Class B common stockholder, Dell Technologies, will receive approximately 7.2  million shares of VMware Class B common stock, at an exchange ratio of 0.0550 shares of VMware Class B common stock for each share of Pivotal Class B common stock. We added PVTL as a potential deal to the Deals in the Works section on August 22, 2019 and the price after the news of the potential deal came out was $13.70.
  4. The acquisition of Carbon Black (CBLK) by VMware (VMW) for $2.1 billion or $26.00 per share in cash.

Deal Updates:

  1. On August 16, 2019, The waiting period for the previously announced pending acquisition of Cray (CRAY) by Hewlett Packard Enterprise Company (HPE) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired.
  2. On August 23, 2019, Valley National Bancorp (VLY) announced it received regulatory approval from The Office of the Comptroller of the Currency to complete the previously announced merger of Oritani Financial (ORIT) with and into Valley.

Closed Deals:

  1. The acquisition of AmeriGas Partners (APU) by UGI Corporation (UGI) on August 21, 2019. It took 141 days for this deal to be completed.

Top deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $52.97 $34.58 09/30/2019 53.19% 554.74%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $5.61 12/31/2019 42.60% 122.44%
ABDC 08/13/2019 Crescent Capital BDC, Inc. (N/A) $11.02 $8.83 12/31/2019 24.80% 71.28%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.39 12/31/2019 23.69% 68.09%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $106.48 12/31/2019 17.39% 49.99%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.84 $6.74 01/31/2020 16.38% 37.83%
OHAI 08/01/2019 Portman Ridge Finance Corporation (PTMN) $1.46 $1.26 12/31/2019 15.87% 45.62%
ONCE 02/25/2019 Roche Holding AG (RHHBY) $114.50 $100.78 04/30/2020 13.61% 20.04%
AVP 05/22/2019 Natura Cosméticos S.A. (NATU3.SA) $4.45 $3.93 01/31/2020 13.24% 30.59%

List of all pending deals:

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

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