Merger Arbitrage Mondays – Standard General Acquires Tegna

Merger activity remained steady with five new deals announced, four deals completed and one deal terminated. Two of the five new deals announced were potential deals in the works.

TEGNA Inc. (TGNA)

Founded in 1906 and headquartered in Tysons, Virginia, TEGNA is a digital media and marketing services company. It was created on June 29, 2015, when the Gannett Company split into two publicly traded companies.

We first added TEGNA as a potential deal in the works on August 16, 2019, when Apollo Global Management (APO) approached the company about a deal. TEGNA’s price after this announcement was $14.28. On January 21, 2020, another large investor in Tegna (TGNA) wanted the company to pursue a merger or sale. During March 2020 even as the nation was coming to grips with a new pandemic and the market dropped sharply, Tegna received four competing offers.

Bidding War Timeline

  • On March 6, 2020, Gray Television (GTN) made an offer to acquire Tegna (TGNA) for approximately $8.5 billion in a cash plus stock deal worth $20 per share.
  • Media mogul Byron Allen made a bid for the company on March 11, 2020.
  • A week later, on March 17, 2020, the Najafi Companies announced the delivery of an offer to Tegna’s (TGNA) board of directors to jointly acquire the company. Gray Television withdrew its offer the same day.
  • The following day on March 30, 2020, shares of Tegna (TGNA) fell the most since November 2008, Apollo Global Management ended its pursuit of the broadcaster, the second suitor to withdraw an offer during the ongoing turmoil in global markets. TGNA’s closing price on March 30 was $10.31.
  • On September 21, 2021, Tegna once again received takeover interest from media mogul Byron Allen and Apollo Global Management. TGNA’s price after this announcement was $21.52.
  • On November 5, 2021, Byron Allen raised $10 billion in preferred equity and debt for his bid for Tegna, hoping to prevail over a rival offer from investment firms Apollo Global Management and Standard General.
  • On February 4, 2022, Tegna announced that it was in advanced discussions with one of its largest shareholders, Standard General, about a potential buyout at about $24 a share.
  • On February 21, 2022, Bloomberg reported that Standard General and Apollo Global Management were nearing a deal to acquire Tegna. TGNA’s price before this announcement was $20.95.
  • The deal was confirmed the next day on February 24, 2022, with Tegna agreeing to be acquired by an affiliate of Standard General for $24.00 per share in cash. The transaction has an enterprise value of approximately $8.6 billion, representing a premium of approximately 39% to TEGNA’s unaffected closing share price on September 14, 2021, the last full trading day prior to media speculation about a potential sale of TEGNA. TEGNA shareholders could also receive additional cash consideration in the form of an unusual “ticking fee”. The details of the “ticking fee” are given in the New Deals section below.

This was one of the “Deals In The Works” that appeared to have a high probability of closing given the level of interest from multiple parties, the specificity of the details that leaked and the fact that the company also confirmed that it was in advanced discussions.

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

There were two new deals announced in the Deals in the Works section last week.

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SPAC Arbitrage

There were three new SPAC IPOs filed and two new SPAC combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. Nukkleus (NUKKannounced the signing of a merger agreement for a proposed business combination with Brilliant Acquisition (BRLI).
  2. FOXO Technologies, a technology company applying epigenetic science and AI to modernize the life insurance industry, entered into a definitive merger agreement with Delwinds Insurance Acquisition (DWIN).

Weekly Spread Changes:

The table below shows weekly spread changes between February 18 and February 25, 2022.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
EXTN 5.77 Enerflex Ltd. (EFX.TO) 7.72 7.52% 4.76% 2.76% All Stock
PVG 14.33 Newcrest Mining Limited (NCMGY) 18.03 1.71% -0.72% 2.43% All Stock
JOBS 51.15 Garnet Faith Limited (N/A) 54.55% 52.61% 1.94% All Cash
SAVE 24.89 Frontier Group Holdings, Inc. (ULCC) 13.01 8.53% 7.42% 1.11% Cash Plus Stock
ATC 24.14 MKS Instruments, Inc. (MKSI) 151.25 1.69% 0.88% 0.81% Cash Plus Stock
CERN 93.41 Oracle Corporation (ORCL) 76.35 1.70% 3.88% -2.18% All Cash
MILE 1.21 Lemonade (LMND) 23.48 2.07% 4.41% -2.34% All Stock
ZNGA 9.18 Take-Two Interactive Software, Inc. (TTWO) 165.28 7.41% 11.54% -4.13% Special Conditions
AZPN 148.56 Emerson Electric Co. (EMR) 92.82 7.70% 12.00% -4.30% Special Conditions
CHNG 21.17 UnitedHealth Group Incorporated (UNH) 475.75 21.63% 28.05% -6.42% All Cash

Deal Statistics:

Total Number of Deals Closed in 2022 29
Total Number of Deals Not Completed in 2022 3
Total Number of Pending Deals
Cash Deals 43
Stock Deals 15
Stock & Cash Deals 8
Special Conditions 9
Total Number of Pending Deals 75
Total Deal Size $607.27 billion

New Deals:

  1. The acquisition of Houghton Mifflin Harcourt Company (HMHC) by Veritas Capital for $2.8 billion or $21 per share in cash. We added HMHC as a potential deal to the Deals in the Works section on January 14, 2022 and the price after the news of the potential deal came out was $16.16.
  2. The acquisition of TEGNA (TGNA) by Standard General for $8.6 billion or $24 per share in cash. TEGNA shareholders will receive additional cash consideration in the form of a “ticking fee” of $0.00167 per share per day (or $0.05 per month) if the closing occurs between the 9- and 12-month anniversary of signing, increasing to $0.0025 per share per day (or $0.075 per month) if the closing occurs between the 12- and 13-month anniversary of signing, $0.00333 per share per day (or $0.10 per month) if the closing occurs between the 13- and 14-month anniversary of signing, and $0.00417 per share per day (or $0.125 per month) if the closing occurs between the 14- and 15-month anniversary of signing. We added TGNA as a potential deal to the Deals in the Works section on September 21, 2022 and the price after the news of the potential deal came out was $21.52.
  3. The acquisition of Meritor (MTOR) by Cummins (CMI) for $3.7 billion or $36.50 per share in cash.
  4. The acquisition of Tenneco (TEN) by funds managed by affiliates of Apollo for $7.1 billion or $20 per share in cash.
  5. The acquisition of South Jersey Industries (SJI) by Infrastructure Investments Fund for $8.1 billion or $36 per share in cash.

Deal Updates:

  1. On February 22, 2022, McAfee (MCFEreceived written notice from the Committee on Foreign Investment in the United States (“CFIUS”) that it had concluded action under Section 721 of the Defense Production Act of 1950, as amended, and determined there are no unresolved national security concerns regarding the transactions contemplated by the Agreement and Plan of Merger.
  2. On February 23, 2022, Oracle Corporation (ORCL) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, applicable to Oracle’s pending acquisition of Cerner Corporation (CERN) expired on February 22, 2022.
  3. On February 23, 2022, McAfee (MCFEreceived written notice from the Competition Commission of Switzerland that the transactions contemplated by the Merger Agreement are authorized in Switzerland, and accordingly all applicable consents and approvals for the Merger required under the applicable antitrust laws in Switzerland have been received.
  4. On February 23, 2022, shareholders of R. R. Donnelley & Sons Company (RRDapproved the company’s merger with Chatham Asset Management at a special meeting of shareholders.
  5. On February 24, 2022, Change Healthcare (CHNG) issued the following statement regarding the announcement that DOJ intends to pursue litigation to block the proposed merger between Change Healthcare and UnitedHealth Group (UNH): “We are aware and disappointed that DOJ has filed litigation to prevent Change Healthcare from closing our merger with UHG. As we previously disclosed, UHG extended our merger agreement through April 5, 2022. We will continue our support of UHG in working toward closing the merger as we comply with our obligations under the merger agreement.
  6. February 24, 2022: According to a New York Times report, The Department of Justice is expected to sue to block UnitedHealth’s (UNH) planned purchase of Change Healthcare (CHNG). The agency is expected to argue in its lawsuit that the combination would give UnitedHealth sensitive data that it could use against its competitors in the industry.
  7. On February 24, 2022, shareholders of Spirit of Texas Bancshares (STXBapproved the company’s merger with Simmons First National Corporation (SFNC) at a special meeting of shareholders.
  8. On February 24, 2022, McAfee (MCFE), received notice from the European Commission that the proposed merger is approved unconditionally under the EU Merger Regulation and the Agreement on the European Economic Area in the European Union/European Economic Area.
  9. On February 24, 2022, Apria (APR) announced that the waiting period has expired under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with its previously announced transaction with Owens & Minor (OMI).
  10. On February 25, 2022, S&P Global (SPGI) and IHS Markit (INFO) announced that the UK’s Competition and Markets Authority and the European Commission have granted the final regulatory approvals necessary for the companies to close their merger.
  11. On February 25, 2022, Zynga (ZNGA) announced the completion of the “go-shop” period under the previously announced merger agreement with Take-Two Interactive Software (TTWO).

Closed Deals:

  1. The acquisition of Vocera Communications (VCRA) by Stryker (SYK) on February 23, 2022. It took 48 days for this deal to be completed.
  2. The acquisition of Nuverra Environmental Solutions (NES) by Select Energy Services (WTTR) on February 23, 2022. It took 72 days for this deal to be completed.
  3. The acquisition of R. R. Donnelley & Sons Company (RRD) by Chatham Asset Management on February 25, 2022. It took 73 days for this deal to be completed.
  4. The acquisition of Monmouth Real Estate Investment Corporation (MNR) by Industrial Logistics Properties Trust (ILPT) on February 25, 2022. It took 112 days for this deal to be completed.

Terminated Deals:

  1. On February 25, 2022, Zendesk (ZEN) announced that it has terminated the agreement and plan of merger with Momentive Global (MNTV), after it did not receive the approval of its stockholders to adopt the proposal.

Top 10 deals with largest updates:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
JOBS 06/21/2021 Garnet Faith Limited (N/A) $79.05 $51.15 03/31/2022 54.55% 622.16%
TMX 12/14/2021 Rentokil Initial plc (RTOKY) $55.00 $42.64 12/31/2022 28.99% 34.46%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $25.75 $21.17 06/30/2022 21.63% 64.20%
ATVI 01/18/2022 Microsoft Corporation (MSFT) $95.00 $81.44 03/31/2023 16.65% 15.31%
TSEM 02/15/2022 Intel Corporation (INTC) $53.00 $46.86 02/15/2023 13.10% 13.55%
BRG 12/20/2021 Blackstone Real Estate (N/A) $29.85 $26.43 06/30/2022 12.94% 38.40%
SAFM 08/09/2021 Cargill and Continental Grain Company (N/A) $203.00 $179.91 06/30/2022 12.83% 38.09%
PNM 10/21/2020 Avangrid, Inc. (AGR) $50.30 $44.93 06/30/2022 11.95% 35.47%
SJR 03/15/2021 Rogers Communications Inc. (RCI) $32.40 $29.59 06/30/2022 9.50% 28.18%
SJI 02/24/2022 Infrastructure Investments Fund (N/A) $36.00 $33.11 12/31/2022 8.73% 10.38%

List of all pending deals:

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

Target Announced
Date
Acquirer Deal
Type
Closing
Value
Deal
Price
Last
Price
Target Volume Estimated
Closing Date
Return Annualized
Return
+ JOBS 6/21/21 Garnet Faith Limited (N/A) All Cash $3.63 B $79.05 $51.15 211,657 3/31/22 54.55% 642.23%
+ TMX 12/14/21 Rentokil Initial plc (RTOKY) Special Conditions $6.7 B $55.00 $42.64 735,243 12/31/22 28.99% 34.58%
+ CHNG 1/06/21 UnitedHealth Group Incorporated (UNH) All Cash $13.28 B $25.75 $21.17 3,518,439 6/30/22 21.63% 64.73%
+ ATVI 1/18/22 Microsoft Corporation (MSFT) All Cash $68.7 B $95.00 $81.44 5,491,825 3/31/23 16.65% 15.35%
+ TSEM 2/15/22 Intel Corporation (INTC) All Cash $5.4 B $53.00 $46.86 2,124,648 2/15/23 13.10% 13.59%
+ BRG 12/20/21 Blackstone Real Estate (N/A) Special Conditions $3.6 B $29.85 $26.43 96,831 6/30/22 12.94% 38.71%
+ SAFM 8/09/21 Cargill and Continental Grain Company (N/A) All Cash $4.49 B $203.00 $179.91 151,065 6/30/22 12.83% 38.40%
+ PNM 10/21/20 Avangrid, Inc. (AGR) All Cash $8.05 B $50.30 $44.93 400,444 6/30/22 11.95% 35.76%
+ SJR 3/15/21 Rogers Communications Inc. (RCI) Special Conditions $26 B $32.40 $29.59 283,596 6/30/22 9.50% 28.41%
+ SJI 2/24/22 Infrastructure Investments Fund (N/A) All Cash $8.1 B $36.00 $33.11 4,467,285 12/31/22 8.73% 10.41%
+ SAVE 2/07/22 Frontier Group Holdings, Inc. (ULCC) Cash Plus Stock $6.6 B $27.01 $24.89 3,809,525 12/31/22 8.53% 10.17%
+ AZPN 10/11/21 Emerson Electric Co. (EMR) Special Conditions $12.34 B $160.00 $148.56 206,024 6/30/22 7.70% 23.04%
+ ZNGA 1/10/22 Take-Two Interactive Software, Inc. (TTWO) Special Conditions $12.7 B $9.86 $9.18 57,595,043 6/30/22 7.41% 22.16%
+ COHR 3/25/21 II-VI Incorporated (IIVI) Cash Plus Stock $6.84 B $284.31 $264.86 133,285 5/31/22 7.34% 29.13%
+ ZGNX 1/19/22 UCB (N/A) Special Conditions $1.28 B $28.00 $26.1 3,901,642 6/30/22 7.28% 21.78%
+ EXTN 1/24/22 Enerflex Ltd. (EFX.TO) All Stock $735 M $6.18 $5.77 861,847 9/30/22 7.02% 11.98%
+ TGNA 2/22/22 Standard General L.P. (N/A) Special Conditions $8.6 B $24.00 $22.71 5,658,339 12/31/22 5.68% 6.78%
+ ARNA 12/13/21 Pfizer Inc. (PFE) All Cash $4.69 B $100.00 $94.63 755,399 6/30/22 5.67% 16.98%
+ VNE 10/04/21 Qualcomm Incorporated (QCOM) All Cash $3.87 B $37.00 $35.47 1,758,309 6/30/22 4.31% 12.91%
+ NPTN 11/04/21 Lumentum Holdings Inc. (LITE) All Cash $745.24 M $16.00 $15.35 282,059 12/31/22 4.23% 5.05%
+ PTRS 11/04/21 OceanFirst Financial Corp. (OCFC) Special Conditions $186 M $10.38 $9.99 1,436 6/30/22 3.90% 11.68%
+ TEN 2/23/22 Apollo Global Management, Inc. (APO) All Cash $7.1 B $20.00 $19.31 5,891,859 12/31/22 3.57% 4.26%
+ CCMP 12/15/21 Entegris, Inc. (ENTG) Cash Plus Stock $6.5 B $193.08 $186.5 264,156 12/31/22 3.53% 4.21%
+ XENT 8/06/21 Medtronic plc (MDT) All Cash $1.1 billion $28.25 $27.33 87,754 3/31/22 3.37% 39.64%
+ GSKY 9/15/21 The Goldman Sachs Group (GS) All Stock $2.24 B $10.50 $10.18 2,104,479 3/31/22 3.18% 37.43%
+ VG 11/22/21 Ericsson (ERIC) All Cash $6.2 B $21.00 $20.37 2,271,382 6/30/22 3.09% 9.25%
+ RESN 2/14/22 Murata Electronics North America, Inc. (N/A) All Cash $249.15 M $4.50 $4.38 3,414,952 3/31/22 2.74% 32.26%
+ NSEC 1/26/22 VR Insurance Holdings, Inc. (N/A) All Cash $41.4 M $16.35 $15.94 5,706 6/30/22 2.57% 7.70%
+ OCDX 12/23/21 Quidel Corporation (QDEL) Cash Plus Stock $8.33 B $18.51 $18.08 1,142,235 6/30/22 2.36% 7.06%
+ MGI 2/15/22 Madison Dearborn Partners, LLC (N/A) All Cash $1.8 B $11.00 $10.75 3,865,592 12/31/22 2.33% 2.77%
+ UMPQ 10/12/21 Columbia Banking System, Inc. (COLB) All Stock $4.5 B $22.03 $21.54 1,901,001 6/30/22 2.26% 6.76%
+ FBC 4/26/21 New York Community Bancorp, Inc. (NYCB) All Stock $2.6 B $46.37 $45.41 318,225 3/31/22 2.12% 25.01%
+ MILE 11/08/21 Lemonade (LMND) All Stock $201.47 M $1.24 $1.21 1,213,804 6/30/22 2.07% 6.19%
+ TLMD 2/03/22 Patient Square Capital (N/A) All Cash $106.42 M $3.00 $2.94 379,621 6/30/22 2.04% 6.11%
+ PBCT 2/22/21 M&T Bank Corporation (MTB) All Stock $7.6 B $21.60 $21.17 3,463,970 6/01/22 2.02% 7.93%
+ MTOR 2/22/22 Cummins Inc. (CMI) All Cash $3.7 B $36.50 $35.8 3,215,130 12/31/22 1.96% 2.33%
+ FRTA 2/22/21 Quikrete Holdings, Inc. (N/A) All Cash $2.74 B $24.00 $23.54 352,731 3/31/22 1.95% 23.01%
+ GCP 12/06/21 Saint-Gobain (N/A) All Cash $2.3 B $32.00 $31.45 617,501 12/31/22 1.75% 2.09%
+ PVG 11/09/21 Newcrest Mining Limited (NCMGY) All Stock $2.8 B $14.58 $14.33 400,263 3/31/22 1.71% 20.17%
+ CERN 12/20/21 Oracle Corporation (ORCL) All Cash $28.4 B $95.00 $93.41 2,263,074 12/31/22 1.70% 2.03%
+ ATC 7/01/21 MKS Instruments, Inc. (MKSI) Cash Plus Stock $6.5 B $24.55 $24.14 1,754,548 3/31/22 1.69% 19.95%
+ ISBC 7/28/21 Citizens Financial Group, Inc. (CFG) Cash Plus Stock $3.5 B $17.20 $16.91 2,098,674 6/30/22 1.69% 5.04%
+ VRS 12/19/21 BillerudKorsnäs AB (N/A) All Cash $825 M $27.00 $26.6 144,900 6/30/22 1.50% 4.50%
+ ROG 11/02/21 DuPont de Nemours, Inc. (DD) All Cash $5.2 B $277.00 $273.1 267,569 6/30/22 1.43% 4.27%
+ CTXS 1/31/22 Vista Equity Partners and Elliott Investment Management LP (N/A) All Cash $16.5 B $104.00 $102.6 3,047,364 6/30/22 1.36% 4.08%
+ WBT 7/14/21 Ali Holding S.r.l. (N/A) All Cash $4.8 B $24.00 $23.68 1,606,760 1/31/22 1.35% 0.00%
+ FOE 5/11/21 Prince International Corporation (N/A) All Cash $2.1 B $22.00 $21.74 447,527 3/31/22 1.20% 14.08%
+ LEVL 11/04/21 First Merchants Corporation (FRME) Cash Plus Stock $323.5 M $41.55 $41.08 25,165 6/30/22 1.15% 3.45%
+ ECOL 2/09/22 Republic Services, Inc. (RSG) All Cash $2.2 B $48.00 $47.49 280,621 6/30/22 1.07% 3.21%
+ STXB 11/19/21 Simmons First National Corporation (SFNC) All Stock $581 M $29.18 $28.88 140,554 6/30/22 1.05% 3.13%
+ NUAN 4/12/21 Microsoft Corp (MSFT) All Cash $19.7 B $56.00 $55.45 4,136,108 3/31/22 0.99% 11.68%
+ ESBK 10/04/21 Community Bank System, Inc. (CBU) All Cash $82.8 M $23.10 $22.88 68 3/31/22 0.96% 11.32%
+ BDSI 2/14/22 Collegium Pharmaceutical, Inc. (COLL) All Cash $488.65 M $5.60 $5.55 2,434,890 3/31/22 0.90% 10.61%
+ BPMP 12/20/21 BP p.l.c. (BP) All Stock $2.45 B $17.67 $17.52 822,213 3/31/22 0.85% 10.06%
+ KRA 9/27/21 DL Chemical Co., Ltd. (N/A) All Cash $2.5 B $46.50 $46.14 325,096 6/30/22 0.78% 2.33%
+ FLOW 12/13/21 Lone Star Funds (N/A) All Cash $3.8 B $86.50 $85.84 547,928 6/30/22 0.77% 2.30%
+ MGP 8/04/21 VICI Properties Inc. (VICI) All Stock $17.2 billion $38.34 $38.1 414,270 6/30/22 0.64% 1.91%
+ TSC 10/20/21 Raymond James Financial, Inc. (RJF) Cash Plus Stock $1.1 B $34.07 $33.88 154,178 6/30/22 0.57% 1.70%
+ MIME 12/07/21 Permira (N/A) All Cash $5.8 B $80.00 $79.58 1,130,678 6/30/22 0.53% 1.58%
+ EPAY 12/17/21 Thoma Bravo (N/A) All Cash $2.6 B $57.00 $56.71 2,117,868 6/30/22 0.51% 1.53%
+ ANAT 8/09/21 Brookfield Asset Management Reinsurance Partners Ltd. (BAMR) All Cash $5.1 B $190.00 $189.18 138,715 6/30/22 0.43% 1.30%
+ APR 1/10/22 Owens & Minor, Inc. (OMI) All Cash $1.62 B $37.50 $37.35 729,099 6/30/22 0.40% 1.20%
+ HMHC 2/22/22 Veritas Capital (N/A) All Cash $2.8 B $21.00 $20.92 10,628,867 6/30/22 0.38% 1.14%
+ STFC 7/12/21 Liberty Mutual Holding Company Inc. (N/A) All Cash $2.48 B $52.00 $51.89 70,541 3/31/22 0.21% 2.50%
+ TACO 12/06/21 Jack in the Box Inc. (JACK) All Cash $575 M $12.51 $12.49 468,967 3/31/22 0.16% 1.89%
+ FTSI 10/22/21 ProFrac Holdings (N/A) All Cash $407.5 M $26.52 $26.48 90,236 3/31/22 0.15% 1.78%
+ CONE 11/15/21 KKR and Global Infrastructure Partners (N/A) All Cash $15 B $90.50 $90.4 2,183,171 6/30/22 0.11% 0.33%
+ PSXP 10/27/21 Phillips 66 (PSX) All Stock $14.5 B $42.35 $42.31 571,063 3/31/22 0.08% 0.97%
+ GNOG 8/09/21 DraftKings Inc. (DKNG) All Stock $1.52 B $8.10 $8.1 837,687 3/31/22 0.04% 0.44%
+ ABTX 11/10/21 CBTX, Inc. (CBTX) All Stock $1.5 B $43.16 $43.16 31,939 6/30/22 0.00% 0.01%
+ MCFE 11/08/21 Investor Group comprised of Advent, Permira, Crosspoint Capital, CPP Investments, GIC and ADIA (N/A) All Cash $14 B $26.00 $26.00 2,508,394 3/01/22 0.00% 0.00%
+ ACBI 7/23/21 SouthState Corporation (SSB) All Stock $542 M $32.35 $32.37 72,149 3/31/22 -0.05% -0.61%
+ INFO 11/30/20 S&P Global (SPGI) All Stock $44 B $108.10 $108.61 22,842,547 2/28/22 -0.47% 0.00%
+ CPLG 11/08/21 Highgate and Cerberus Capital Management, L.P. (N/A) Special Conditions $1.5 B $15.65 $15.97 1,132,573 3/31/22 -2.00% -23.59%
+ APTS 2/16/22 Blackstone Real Estate Income Trust, Inc. (N/A) All Cash $5.8 B $25.00 $25.57 3,487,310 6/30/22 -2.23% -6.67%

Conclusion:

SPACs have been in a challenging environment the last several months where many SPACs have declined precipitously after merging with an operating company. In this environment it is not surprising that two active SPAC business combinations were terminated last week.

While multiple active deals in the MAT received required approvals, Change Healthcare (CHNG) faced significant challenges with the Department of Justice and Zendesk (ZEN) terminated its merger agreement with Momentive Global (MNTV) following pressure from shareholders to scuttle the deal.

Russia’s invasion of Ukraine has also had an impact on some of the active deals in the MAT. According to a post in Seeking Alpha, shares of GCP Applied Technologies (GCP), which agreed to a $2.3B sale to Saint-Gobain in December, and Kraton (KRA), which is being acquired by DL Chemical, fell because these deals require Russian approval.

Disclaimer: I have long positions in TEGNA (TGNA), Arena Pharmaceuticals (ARNA) and Bluerock Residential Growth REIT (BRG). 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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