Merger Arbitrage Mondays

Merger Arbitrage Mondays – The Battle For Anixter International Heats Up

December 30, 2019

Merger activity decreased 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 three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019	190
Total Number of Deals Not Completed in 2019	9
Total Number of Pending Deals
Cash Deals	48
Stock Deals	22
Stock & Cash Deals	5
Special Conditions	5
Total Number of Pending Deals	80
Aggregate Deal Consideration	$1.35 trillion

New Deals:

The acquisition of Cincinnati Bell (CBB) by Brookfield Infrastructure Partners (BIP) for $2.6 billion or $10.50 per share in cash.
The acquisition of AquaVenture Holdings Limited (WAAS) by Culligan for $1.1 billion or $27.10 per share in cash.

Deal Updates:

On December 23, 2019, Genworth Financial (GNW) and China Oceanwide Holdings Group announced they have agreed to a 13th waiver and agreement of each party’s right to terminate the previously announced merger agreement. The 13th waiver and agreement extends the previous deadline of December 31, 2019 to no later than March 31, 2020.
On December 23, 2019, Anixter (AXE) announced that Anixter and CD&R agreed to an Amended and Restated Merger Agreement to increase the per-share consideration payable to Anixter’s shareholders to $86.00 per share in cash from $82.50 per share in cash and a $2.50 contingent value right.
On December 24, 2019, WESCO International (WCC) confirmed that it is seeking to acquire Anixter International(AXE), and has most recently made an offer valued at $90 per Anixter share.
On December 26, 2019, WESCO International (WCC) confirmed it has delivered to the Anixter International (AXE) board of directors an improved proposal to acquire Anixter, a leading global distributor of Network & Security Solutions, Electrical & Electronic Solutions and Utility Power Solutions, for $93.50 per share in cash and stock.

Closed Deals:

The acquisition of Carbonite (CARB) by Open Text Corporation (OTEX) on December 24, 2019. It took 43 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol	Announced Date	Acquiring Company	Closing Price	Last Price	Closing Date	Profit	Annualized Profit
PACB	11/01/2018	Illumina, Inc. (ILMN)	$8.00	$5.24	03/31/2020	52.67%	208.97%
S	04/29/2018	T-Mobile US, Inc. (TMUS)	$7.92	$5.2	01/31/2020	52.34%	597.02%
GNW	10/23/2016	China Oceanwide Holdings Group Co., Ltd. (N/A)	$5.43	$4.36	03/31/2020	24.54%	97.36%
ABDC	08/13/2019	Crescent Capital BDC, Inc. (N/A)	$11.02	$9.19	12/31/2019	19.91%	7268.23%
FIT	11/01/2019	Google LLC (N/A)	$7.35	$6.48	06/30/2020	13.43%	26.78%
SORL	11/29/2019	Ruili International Inc. (N/A)	$4.72	$4.44	06/30/2020	6.31%	12.58%
MLNX	03/11/2019	NVIDIA Corporation (NVDA)	$125.00	$117.86	03/31/2020	6.06%	24.03%
AMTD	11/25/2019	The Charles Schwab Corporation (SCHW)	$52.39	$50.36	12/31/2020	4.02%	4.00%
YTRA	07/17/2019	Ebix, Inc. (EBIX)	$3.27	$3.14	12/31/2019	3.98%	1453.03%
FSBC	12/19/2019	Evans Bancorp, Inc. (EVBN)	$17.80	$17.12	06/30/2020	3.97%	7.92%

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 Sprint (S), Mellanox Technologies (MLNX) and Pacific Biosciences of California (PACB). 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

Merger Arbitrage Mondays – The Battle For Anixter International Heats Up

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