Merger activity moderated again last week with three new deals announced and three active deals completed. We had been tracking two of the three new deals announced as “potential deals in the works”.
On August 18, 2020, Acorn International (ATV) announced that it had received a preliminary non-bidding proposal from the Executive Chairman of the company. This “potential deal” became successful on October 12, 2020, when First Ostia Port announced the acquisition of Acorn in a going private transaction. The deal was at a premium of over 42% of the closing price on August 18, 2020, when the potential deal was announced.
Similarly, DouYu International (DOYU) had announced the receipt of a preliminary non bidding proposal on August 10, 2020. This potential deal also came to fruition last week when DouYu and HUYA (HUYA) announced their 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 October 9, 2020, and October 16, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
TAT | 0.2498 | TAT Holdco LLC and TAT Merger Sub LLC (N/A) | 0.00 | -47.96% | -55.62% | 7.66% | All Cash |
GSUM | 1.8 | Gridsum Corporation (N/A) | 0.00 | 11.11% | 9.89% | 1.22% | All Cash |
WPX | 4.57 | Devon Energy Corporation (DVN) | 8.95 | 1.15% | 0.02% | 1.13% | All Stock |
PRCP | 6.9 | Atlas Copco (N/A) | 0.00 | 1.45% | 0.57% | 0.88% | All Cash |
YIN | 7.19 | Yinke Holdings Ltd (N/A) | 1.53% | 0.97% | 0.56% | All Cash | |
EIDX | 76.18 | BridgeBio Pharma, Inc. (BBIO) | 40.97 | -3.83% | -0.72% | -3.11% | Special Conditions |
FIT | 7.08 | Google LLC (GOOG) | 1573.01 | 3.81% | 7.14% | -3.33% | All Cash |
NEWA | 3.57 | Crouching Tiger Holding Limited (N/A) | 0.00 | 2.24% | 5.80% | -3.56% | All Cash |
GNW | 3.51 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 54.70% | 58.31% | -3.61% | All Cash | |
TIF | 122.72 | LVMH Moët Hennessy Louis Vuitton SE (LVMUY) | 101.88 | 10.01% | 14.01% | -4.00% | All Cash |
Deal Statistics:
Total Number of Deals Closed in 2020 | 113 |
Total Number of Deals Not Completed in 2020 | 16 |
Total Number of Pending Deals | |
Cash Deals | 32 |
Stock Deals | 12 |
Stock & Cash Deals | 3 |
Special Conditions | 3 |
Total Number of Pending Deals | 50 |
Aggregate Deal Consideration | $701.75 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 |
---|---|---|---|---|---|---|---|
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.51 | 11/30/2020 | 54.70% | 464.32% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.8 | 03/31/2021 | 11.11% | 24.73% |
TIF | 11/25/2019 | LVMH Moët Hennessy Louis Vuitton SE (LVMUY) | $135.00 | $122.72 | 12/31/2020 | 10.01% | 49.36% |
CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $18.37 | 12/31/2020 | 7.51% | 37.05% |
MXIM | 07/13/2020 | Analog Devices, Inc. (ADI) | $77.89 | $73.09 | 06/30/2021 | 6.57% | 9.41% |
WLTW | 03/09/2020 | Aon plc (AON) | $229.91 | $216.76 | 06/30/2021 | 6.07% | 8.68% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $16.20 | $15.28 | 06/30/2021 | 6.01% | 8.61% |
FIT | 11/01/2019 | Google LLC (GOOG) | $7.35 | $7.08 | 01/31/2021 | 3.81% | 13.26% |
ACIA | 07/08/2019 | Cisco Systems, Inc. (CSCO) | $70.00 | $67.49 | 12/31/2020 | 3.72% | 18.34% |
VAR | 08/02/2020 | Siemens Healthineers AG (N/A) | $177.50 | $171.96 | 06/30/2021 | 3.22% | 4.61% |
List of all pending deals:
Disclaimer: I have long positions in Immunomedics (IMMU) and Otelco (OTEL). 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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