Merger Arbitrage Mondays – Dime Community Bancshares and Bridge Bancorp Combine in Merger of Equals

Merger activity remained steady last week with one new deal announced, six deals closing and one deal called off.

The month of June ended with six active deals being completed and another deal terminated, resulting in a total of five deals terminated in a single month. June was also the most active month with respect to new deals announced in the second quarter of 2020, with six new deals announced and ten new potential deals announced.

The month of July began with the announcement of an all stock merger agreement between Dime Community Bancshares (DCOM) and Bridge Bancorp (BDGE), which will result in Dime shareholders owning approximately 52% and Bridge shareholders will own approximately 48% of the combined company.

There was one potential deal announced last week.  The special committees of Liberty Broadband Corporation (LBRDA) and GCI Liberty (GLIBA) reached a preliminary understanding regarding a possible exchange ratio for a potential business combination transaction between Liberty Broadband and GCI Liberty, in which Liberty Broadband would acquire all of the outstanding shares of GCI Liberty in a stock-for-stock merger.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There was one new deal announced in the Deals in the Works section last week.

Weekly Spread Changes:

The table below shows weekly spread changes between June 26, 2020, and July 3, 2020.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
GNW 2.28 China Oceanwide Holdings Group Co., Ltd. (N/A) 138.16% 118.07% 20.09% All Cash
ASFI 12.95 Stern Group (N/A) 1.16% -11.22% 12.38% All Cash
LACQ 10.78 GTWY Holdings Limited (N/A) 6.68% -1.71% 8.39% Special Conditions
TTPH 2.46 La Jolla Pharmaceutical Company (LJPC) 4.41 -18.70% -23.08% 4.38% Special Conditions
CDOR 4.11 NexPoint Hospitality Trust (N/A) 170.07% 166.83% 3.24% All Cash
GILT 6.3 Comtech Telecommunications Corp. (CMTL) 16.04 35.42% 37.77% -2.35% Cash Plus Stock
TIF 122.22 LVMH Moët Hennessy Louis Vuitton SE (LVMUY) 89.99 10.46% 12.90% -2.44% All Cash
MSBF 12.5 Kearny Financial Corp. (KRNY) 8.01 -16.70% -11.29% -5.41% All Stock
QES 1.005 KLX Energy Services Holdings, Inc. (KLXE) 2.11 1.70% 11.67% -9.97% All Stock
CETV 3.74 PPF Group N.V. (N/A) 22.46% 36.51% -14.05% All Cash

Deal Statistics:

Total Number of Deals Closed in 2020 77
Total Number of Deals Not Completed in 2020 12
Total Number of Pending Deals
Cash Deals 22
Stock Deals 11
Stock & Cash Deals 3
Special Conditions 2
Total Number of Pending Deals 38
Aggregate Deal Consideration $536.44 billion

New Deals:

  1. The merger of Dime Community Bancshares (DCOM) and Bridge Bancorp (BDGE) for $489 million in an all stock deal. Under the terms of the merger agreement, Dime will merge with and into Bridge, with Bridge as the surviving corporation, and Dime Community Bank will merge with and into BNB Bank, with BNB Bank as the surviving institution. Following the closing of the transaction, Dime shareholders will receive 0.6480 shares of Bridge common stock for each share of Dime common stock they own.

Deal Updates:

  1. On June 26, 2020, the stockholders of Leisure Acquisition (LACQapproved an amendment to the Company’s investment management trust agreement by and between the Company and the Continental Stock Transfer & Trust Company, to extend the date on which to commence liquidating the trust account established in connection with the Company’s initial public offering in the event the Company has not consummated a business combination from June 30, 2020 to December 1, 2020. On June 29, 2020, the Company entered into the IMTA Amendment.
  2. On June 29, 2020, QIAGEN (QGEN) announced that its shareholders approved all agenda items related to the proposed voluntary public takeover offer for the acquisition of all ordinary shares in QIAGEN by Thermo Fisher Scientific (TMO).
  3. On June 30, 2020, Genworth Financial (GNW) announced that it is moving forward with plans to address its near-term liabilities and financial obligations, and maximize shareholder value while China Oceanwide Holdings Group finalizes its funding plan for the acquisition of Genworth. Genworth and Oceanwide also announced that they have agreed to a 15th waiver and agreement of each party’s right to terminate the previously announced merger agreement. The 15th waiver extends the previous deadline of June 30, 2020 to no later than September 30, 2020.
  4. On July 1, 2020, Kearny Financial (KRNY) and MSB Financial (MSBF) announced that they expect that their proposed merger transaction will be completed after the market closes on July 10, 2020.
  5. July 2, 2020: According to Reuters, EU regulators are checking whether Google’s (GOOG) purchase of Fitbit (FIT) might allow it to drive rival makers of wearable devices, app developers and other online service providers out of the market, and boost its dominance in online advertising and search.

Closed Deals:

  1. The acquisition of Adesto Technologies Corporation (IOTS) by Dialog Semiconductor (DLGNF) on June 29, 2020. It took 130 days for this deal to be completed.
  2. The acquisition of Tech Data Corporation (TECD) by Apollo Global Management (APO) on June 30, 2020. It took 230 days for this deal to be completed.
  3. The acquisition of Alio Gold (ALO) by Argonaut Gold (ARNGF) on July 1, 2020. It took 93 days for this deal to be completed.
  4. The acquisition of Mobile Mini (MINI) by WillScot Corporation (WSC) on July 1, 2020. It took 121 days for this deal to be completed.
  5. The acquisition of Portola Pharmaceuticals (PTLA) by Alexion Pharmaceuticals (ALXN) on July 2, 2020. It took 58 days for this deal to be completed.
  6. The acquisition of IBERIABANK Corporation (IBKC) by First Horizon National Corporation (FHN) on July 2, 2020. It took 241 days for this deal to be completed.

Deals Terminated:

  1. On June 29, 2020, Synacor (SYNC) and Qumu Corporation (QUMU) announced that the companies have mutually agreed to terminate their proposed all-stock merger agreement.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
CDOR 07/22/2019 NexPoint Hospitality Trust (N/A) $11.10 $4.1100 09/30/2020 170.07% 713.52%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $2.28 09/30/2020 138.16% 579.63%
FSCT 02/06/2020 Advent International (N/A) $33.00 $21.57 07/31/2020 52.99% 743.90%
GILT 01/29/2020 Comtech Telecommunications Corp. (CMTL) $8.53 $6.3 10/31/2021 35.42% 26.77%
CETV 10/27/2019 PPF Group N.V. (N/A) $4.58 $3.7400 09/30/2020 22.46% 94.23%
FIT 11/01/2019 Google LLC (GOOG) $7.35 $6.29 09/30/2020 16.85% 70.70%
GRUB 06/10/2020 Just Eat Takeaway.com N.V. (TKAYF) $77.21 $69.87 03/31/2021 10.51% 14.26%
TIF 11/25/2019 LVMH Moët Hennessy Louis Vuitton SE (LVMUY) $135.00 $122.22 07/31/2020 10.46% 146.79%
DLPH 01/28/2020 BorgWarner Inc. (BWA) $15.16 $14.2 12/31/2020 6.73% 13.73%
LACQ 12/30/2019 GTWY Holdings Limited (N/A) $11.50 $10.78 12/31/2020 6.68% 13.62%

List of all pending deals:

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

Disclaimer: 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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