Merger Arbitrage Mondays – Alexion’s Acquisition Of Achillion Includes A Free Kicker
Merger activity increased last week with two 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 two new deals announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Jagged Peak Energy (JAG) by Parsley Energy (PE) for $2.27 billion in an all stock deal. Under the terms of the agreement, Jagged Peak shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged Peak common stock they own.
- The acquisition of Achillion Pharmaceuticals (ACHN) by Alexion Pharmaceuticals (ALXN) for $930 million or $6.30 per share in cash. The transaction includes the potential for additional consideration in the form of non-tradeable contingent value rights (CVRs), which will be paid to Achillion shareholders if certain clinical and regulatory milestones are achieved within specified periods. These include $1.00 per share for the U.S. FDA approval of danicopan and $1.00 per share for ACH-5228 Phase 3 initiation. We are going to treat this as a “Special Conditions” deal with a value of $6.30 for the purposes of our Merger Arbitrage Tool.
Only plus or premium subscribers can access this post. Subscribe today.
