Merger Arbitrage Mondays – Two New Acquisitions At Huge Premiums
Merger activity remained unchanged last week with two new deals announced and seven 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 three new deals announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Alder BioPharmaceuticals (ALDR) by H. Lundbeck A/S for $1.95 billion. Under the terms of the agreement, Alder stockholders will be offered an upfront payment for USD 18.00 per share in cash, along with one non-tradeable Contingent Value Right (CVR) that entitles them to an additional USD 2.00 per share upon approval of the migraine prevention drug eptinezumab by the European Medicines Agency (EMA), representing a total potential consideration of USD 20.00 per share. The cash portion of the deal represents a 79% premium to the closing price of Alder before the announcement. Because of the uncertainty about the value of the CVR, we are going to treat this as a “Special Conditions” deal worth $18/share in our Merger Arbitrage Tool (MAT).
- The acquisition of SemGroup Corporation (SEMG) by Energy Transfer (ET) for $5.1 billion in a cash plus stock deal. Under the terms of the agreement, SemGroup shareholders will receive $6.80 per share in cash and 0.7275 of an ET common unit for each SemGroup share. ET is paying a premium of 65% to SemGroup’s closing share price of $10.28 on September 13, 2019, and an 87% premium to SemGroup’s 20 day volume weighted average price (VWAP) as of the same date.
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