Merger activity decreased last week with four new deals announced and eight deals completed.
There was a significant drop in SPAC activity last week with only two new SPAC IPOs filed and four SPAC business combinations announced.
We added Brookfield Property Partners (BPY) as a potential deal on January 4, 2021, when Brookfield Asset Management (BAM) offered to acquire BPY for $16.50 for each unit, at a premium of about 14%. On April 1, 2021, Brookfield Property Partners accepted the offer after Brookfield Asset Management (BAM) enhanced its offer price by 10% to acquire the company for $18.17 in cash or 0.3979 of a Brookfield class A limited voting share, or 0.7268 of a BPY preferred unit with a liquidation preference of $25.00 per unit.
Brookfield Property Partners has $77 billion in assets split between office properties ($32.3 billion), retail properties ($32.9 billion) and the rest in fund investments. The company become one of the largest operator of malls after it acquired Chicago-based mall operator GGP in 2018. I ended up with a position in Brookfield Property Partners in my portfolio as a result of that acquisition.
The February 2020 FT article titled Brookfield: inside the $500bn secretive investment firm provides a good overview of BAM and its structure.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were no new deals announced in the Deals in the Works section last week.
There were 2 new SPAC IPOs and 4 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.
- Cazoo Holdings Limited and AJAX I (AJAX) announced the signing of a definitive business combination agreement.
- SomaLogic and CM Life Sciences II (CMIIU) announced that they have entered into a definitive business combination agreement.
- Lilium GmbH has entered into a definitive business combination agreement with Qell Acquisition (QELL)
- Union Acquisition Corp. II (LATN) announced execution of a definitive business combination agreement along with a fully committed PIPE financing agreement with Procaps Group.
Weekly Spread Changes:
The table below shows weekly spread changes between March 26, 2021, and April 2, 2021.
|CUB||74.6||Veritas and Evergreen Coast Capital Corporation (N/A)||0.54%||-6.42%||6.96%||All Cash|
|SOGO||7.7||Tencent Parties (N/A)||15.58%||10.56%||5.02%||All Cash|
|CHNG||22.39||UnitedHealth Group Incorporated (UNH)||367.07||15.01%||13.74%||1.27%||All Cash|
|COHR||258.53||II-VI Incorporated (IIVI)||71.4||10.23%||9.07%||1.16%||Cash Plus Stock|
|CKH||40.57||American Industrial Partners (N/A)||2.29%||1.22%||1.07%||All Cash|
|APHA||18.12||Tilray, Inc. (TLRY)||22.34||3.33%||6.78%||-3.45%||All Stock|
|CXDC||1.11||Faith Dawn Limited and Faith Horizon (N/A)||8.11%||12.15%||-4.04%||All Cash|
|TPCO||18.03||Alden Global Capital (N/A)||-4.33%||-0.06%||-4.27%||All Cash|
|DOYU||10.56||HUYA Inc. (HUYA)||19.54||35.08%||42.75%||-7.67%||All Stock|
|NEWA||3.41||Crouching Tiger Holding Limited (N/A)||7.04%||16.99%||-9.95%||All Cash|
|Total Number of Deals Closed in 2021||47|
|Total Number of Deals Not Completed in 2021||2|
|Total Number of Pending Deals|
|Stock & Cash Deals||12|
|Total Number of Pending Deals||85|
|Aggregate Deal Consideration||$599.75 billion|
- The acquisition of Fly Leasing Limited (FLY) by Carlyle Aviation Partners for $2.36 billion or $17.05 per share in cash.
- The acquisition of Premier Financial Bancorp (PFBI) by Peoples Bancorp (PEBO) for $292.3 million in an all stock deal. Under the terms of the agreement, shareholders of Premier will receive 0.58 shares of Peoples common stock for each share of Premier common stock.
- The merger of Diamond S Shipping (DSSI) with International Seaways (INSW) for $1.09 billion in an all stock deal. Under the terms of the agreement, Diamond S shareholders will receive 0.55375 shares of INSW common stock for each share of Diamond S common stock held.
- The acquisition of Brookfield Property Partners (BPY) by Brookfield Asset Management (BAM) for $6.5 billion. Under the terms of the agreement, BPY unitholders will have the ability to elect to receive, per BPY unit, $18.17 in cash, 0.3979 of a Brookfield class A limited voting share , or 0.7268 of a BPY preferred unit with a liquidation preference of $25.00 per unit. We added BPY as a potential deal to the Deals in the Works section on January 4, 2021, and the price after the news of the potential deal came out was $16.84.
- On March 30, 2021, shareholders of Watford Holdings (WTRE) approved the company’s merger with Arch Capital Group (ACGL) at a special meeting of shareholders.
- On March 31, 2021, Cubic Corporation (CUB) announced that it has accepted a proposal from Veritas Capital and Evergreen Coast Capital Corporation to increase the price per share of their pending acquisition of Cubic to $75.00 per share in cash.
- On March 31, 2021, SMTC Corporation (SMTX) announced that its stockholders voted to adopt the previously announced definitive merger agreement, pursuant to which an affiliate of H.I.G. Capital would complete its investment in SMTC.
- On March 31, 2021, shareholders of Magellan Health (MGLN) approved the company’s merger with Centene Corporation (CNC) at a special meeting of shareholders.
- On March 31, 2021, Cantel Medical (CMD) and STERIS (STE) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for STERIS’s tender offer for Cantel Medical.
- On April 1, 2021, American Industrial Partners announced the final extension of its tender offer for shares of SEACOR Holdings (CKH) April 5, 2021, which is the End Date under the Merger Agreement.
- On April 1, 2021, Thoma Bravo and Talend (TLND) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for Thoma Bravo’s tender offer for Talend.
- On April 2, 2021, MTS Systems Corporation (MTSC) received all regulatory approvals required to complete the previously announced merger with Amphenol Corporation (APH). The Company expects to close the merger on April 7, 2021.
- The acquisition of Urovant Sciences (UROV) by Sumitovant Biopharma on March 29, 2021. It took 136 days for this deal to be completed.
- The acquisition of Otelco (OTEL) by Oak Hill Capital on March 31, 2021. It took 247 days for this deal to be completed.
- The acquisition of Navios Maritime Containers (NMCI) by Navios Maritime Partners (NMM) on March 31, 2021. It took 86 days for this deal to be completed.
- The acquisition of Fauquier Bankshares (FBSS) by Virginia National Bankshares Corporation (VABK) on April 1, 2021. It took 182 days for this deal to be completed.
- The acquisition of HighPoint Resources Corporation (HPR) by Bonanza Creek Energy (BCEI) on April 1, 2021. It took 143 days for this deal to be completed.
- The acquisition of HMS Holdings (HMSY) by Gainwell Technologies on April 1, 2021. It took 101 days for this deal to be completed.
- The acquisition of Synacor (SYNC) by Centre Lane Partners on April 1, 2021. It took 49 days for this deal to be completed.
- The acquisition of Pandion Therapeutics (PAND) by Merck (MRK) on April 2, 2021. It took 35 days for this deal to be completed.
Top 10 deals with largest spreads:
|DOYU||10/12/2020||HUYA Inc. (HUYA)||$14.26||$10.56||06/30/2021||35.08%||147.16%|
|SJR||03/15/2021||Rogers Communications Inc. (RCI)||$32.40||$26.45||06/30/2022||22.50%||18.17%|
|MX||03/26/2021||South Dearborn Limited (N/A)||$29.00||$25.04||12/31/2021||15.81%||21.30%|
|SOGO||09/29/2020||Tencent Parties (N/A)||$8.95||$7.7||07/31/2021||15.58%||48.21%|
|CHNG||01/06/2021||UnitedHealth Group Incorporated (UNH)||$25.75||$22.39||12/31/2021||15.01%||20.21%|
|COHR||03/25/2021||II-VI Incorporated (IIVI)||$284.97||$258.53||12/31/2021||10.23%||13.78%|
|CXDC||06/15/2020||Faith Dawn Limited and Faith Horizon (N/A)||$1.20||$1.11||05/10/2021||8.11%||82.21%|
|AJRD||12/20/2020||Lockheed Martin Corporation (LMT)||$51.00||$47.19||12/31/2021||8.07%||10.87%|
|ATH||03/08/2021||Apollo Global Management, Inc. (APO)||$55.16||$51.13||01/31/2022||7.89%||9.53%|
List of all pending deals:
List of all pending deals:
Multiple active deals were completed successfully last week as we came to the end of the first quarter of 2021. Having received necessary approvals, a few more are expected to be completed this month.
Disclaimer: I have long positions in Change Healthcare (CHNG) and Brookfield Property Partners (BPY). 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.