Merger activity decreased last week with three new deals announced and five deals closing.
FGL Holdings (FG) previously known as Fidelity & Guaranty Life was founded in the year 1959. The company has been a leader in providing annuity and life-insurance product for nearly 60 years. This is the third time this company has made its way into our Merger Arbitrage Tool. We added Fidelity & Guaranty Life to our list of active deals in the year 2015, when the company announced it would be acquired by the Chinese insurance firm Anbang Insurance. The deal was terminated on April 17, 2017. Just over a month later, on May 24, 2017, Fidelity & Guaranty Life agreed to be acquired by CF Corporation. That deal was completed on November 30, 2017 and the company renamed itself FGL Holdings. Almost three years later, the company has made it to our list for the third time, now being acquired by Fidelity National Financial (FNF) in a cash or stock deal.
Opus Bank (OPB), an Irvine, California based regional bank, agreed to be acquired by Pacific Premier Bancorp (PPBI), another Irvine based bank for $1 billion in an all stock deal.
The acquisition of Forescout Technologies (FSCT) by Advent International was the third deal announced last week. Forescout provides agentless visibility, control and orchestration from campus to cloud. The company started exploring strategic alternatives including a possible sale in November of last year.
Weekly Spread Changes
The table below shows weekly spread changes for some of the deals from our Merger Arbitrage table between January 31, 2020 and February 7, 2020.
Symbol | Quote | Acquiring Company | Current Spread | Spread Last Week | Weekly Spread Change | Deal Type |
GNW | 3.82 | China Oceanwide Holdings Group Co., Ltd. | 42.15% | 32.44% | 9.71% | All Cash |
CBB | 12.9 | Brookfield Infrastructure Partners L.P. (BIP) | -18.60% | -23.41% | 4.81% | All Cash |
BREW | 16.11 | Anheuser-Busch | 2.42% | 0.61% | 1.81% | All Cash |
MSBF | 16.76 | Kearny Financial Corp. (KRNY) | -5.99% | -7.41% | 1.42% | All Stock |
LACQ | 10.44 | GTWY Holdings Limited | 10.15% | 10.26% | -0.11% | Special Conditions |
AVX | 20.32 | Kyocera Corporation | -4.04% | -3.80% | -0.24% | All Cash |
FIT | 6.64 | Google LLC | 10.69% | 12.73% | -2.04% | All Cash |
PGNX | 4.62 | Lantheus Holdings, Inc. (LNTH) | -7.72% | -1.77% | -5.95% | All Stock |
NTGN | 1.51 | BioNTech SE (BNTX) | 28.84% | 36.31% | -7.47% | All Stock |
S | 4.93 | T-Mobile US, Inc. (TMUS) | 77.74% | 85.85% | -8.11% | All Stock |
FOMX | 4.5 | Menlo Therapeutics Inc. (MNLO) | -35.33% | -24.42% | -10.91% | Special Conditions |
Genworth Financial (GNW) has been in our list of active deals for over three years now. On February 4, 2020, Tom McInerney, President and CEO of Genworth Financial said that they are in discussions with the New York Department of Financial Services in an effort to secure a reapproval of the Oceanwide transaction, which represents one of the last remaining milestones in closing the transaction. He also said, “However, if the parties are unable to reach an agreement with the NYDFS that is also acceptable to our other state insurance regulators, Oceanwide and Genworth will need to consider other alternatives to the transaction for each party.” The Merger Agreement has been extended to not later than March 31, 2020.
The T-Mobile (TMUS) and Sprint (S) merger continues to reel under Antitrust issues. U.S. District Court Judge Victor Marrero is expected to deliver a decision later this month regarding the antitrust trials.
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. According to the Wall Street Journal, the owner of the New York Stock Exchange has made a takeover offer for eBay (EBAY) that could value the company at more than $30 billion.
Deal Statistics:
Total Number of Deals Closed in 2020 | 22 |
Total Number of Deals Not Completed in 2020 | 2 |
Total Number of Pending Deals | |
Cash Deals | 39 |
Stock Deals | 21 |
Stock & Cash Deals | 6 |
Special Conditions | 4 |
Total Number of Pending Deals | 70 |
Aggregate Deal Consideration | $431.45 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $8.76 | $4.93 | 03/31/2020 | 77.74% | 556.40% |
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.82 | 03/31/2020 | 42.15% | 301.64% |
NTGN | 01/16/2020 | BioNTech SE (BNTX) | $1.95 | $1.51 | 06/30/2020 | 28.84% | 74.12% |
FIT | 11/01/2019 | Google LLC (N/A) | $7.35 | $6.64 | 06/30/2020 | 10.69% | 27.48% |
LACQ | 12/30/2019 | GTWY Holdings Limited (N/A) | $11.50 | $10.44 | 06/30/2020 | 10.15% | 26.10% |
TSG | 10/02/2019 | Flutter Entertainment PLC (PDYPF) | $25.01 | $23.2 | 09/30/2020 | 7.79% | 12.16% |
FSBC | 12/19/2019 | Evans Bancorp, Inc. (EVBN) | $17.80 | $16.95 | 06/30/2020 | 5.01% | 12.89% |
MLNX | 03/11/2019 | NVIDIA Corporation (NVDA) | $125.00 | $119.56 | 03/31/2020 | 4.55% | 32.56% |
AMTD | 11/25/2019 | The Charles Schwab Corporation (SCHW) | $51.27 | $49.31 | 12/31/2020 | 3.97% | 4.45% |
SORL | 11/29/2019 | Ruili International Inc. (N/A) | $4.72 | $4.54 | 06/30/2020 | 3.96% | 10.19% |
List of all pending deals:
Disclaimer: I hold long positions in Sprint (S) and Mellanox Technologies (MLNX). 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.
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