Merger activity remained steady last week with four new deals announced and two deals completed. Two of the four deals announced were potential deals in the works.
The month of April ended with 16 new deals announced for an aggregate deal value of $92.92 billion. Elon Musk’s acquisition of Twitter (TWTR) announced last Monday was the largest deal announced last week and the most talked about deal this year.
Looking back over the years, I have written about Twitter multiple times going all the way back to 2009. In an article titled “Customer Service ala Twitter Style“, I had written about Twitter, a micro-blogging site that had exploded in popularity and more than doubled its unique visitors in March 2009 to 9.3 million. I was reminiscing about the company Kitchenette SF, that was discussed in the customer service article, with a friend and ex-colleague recently and neither of us could remember the name of that pop-up food truck. In 2017, I wrote about Jack Dorsey’s well-timed $7 million purchase of Twitter in an Insider Weekends article. The same year I wrote another article on Seeking Alpha titled ‘10 Things Worth Celebrating About Twitter‘, highlighting as the title suggests, aspects of Twitter that were worth celebrating.
Earlier this year, in February 2022, in a Seeking Alpha article titled Broken Growth Stocks: Twitter, I talked about how Twitter had been a show me story for years with a lot of potential that was yet to be realized. In spite of seeing significant revenue growth since going public the stock had not appreciated much. Having outperformed Facebook (FB) during the last five years and with a new CEO at the helm, the future looked bright for Twitter. We wrote the following about our valuation model in that article and the intrinsic value of $55.16 we came up with was remarkably close to the price Elon Musk ended up offering for Twitter,
Plugging the next two years of consensus analyst estimates for 2022 earnings of 20 cents per share and 2023 earnings of 90 cents per share into a DCF model, assuming an EPS growth rate of 35% in year 3, declining 3% a year through 2031, an 8% discount rate and a 2% terminal growth rate, I get an intrinsic value of $55.16 per share, a 53% discount to current price. A DCF model is only as good as its assumptions and it’s entirely possible that the future might unfold differently.
The other big event last week was Elon Musk’s acquisition of Twitter (TWTR) in a deal financed through $13 billion in debt from banks, $12.5 billion through a margin loan on his Tesla (TSLA) shares and an additional $21 billion in equity financing from him. Towards this end, he sold 9.645 million shares of Tesla generating $8.52 billion from the sales. We discussed his sales of Tesla late last year in an article titled The Pied Piper Is Heading Out Of Town.
The spread on the Twitter-Musk deal is 10.57%, indicating that investors are concerned about the deal being consummated. Primary concerns include potential regulatory issues with the Biden administration focused on big tech and Musk’s financing of the deal, partly through loans backed by Tesla.
We did a series of four Twitter threads last week to create a primer about the merger arbitrage strategy. You can find the threads here:
The merger agreement includes a termination fee of $1 billion, which is payable both ways depending on which party terminates the deal. The agreement also barred Elon Musk from sending disparaging tweets about the company or its representatives.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
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Deals In The Works
There were three new deals announced in the Deals in the Works section last week.
SPAC Arbitrage
There were three new SPAC IPOs filed and five new SPAC combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.
On April 26, 2022, Isleworth Healthcare Acquisition (ISLE) and Cytovia Holdings, a biopharmaceutical company empowering natural killer (NK) cells to fight cancer through stem cell engineering and multispecific antibodies entered into a definitive business combination agreement.
On April 28, 2022, Peak Bio, a clinical-stage biopharmaceutical company focused on developing the next-generation of therapeutics to treat oncology and inflammatory diseases, and Ignyte Acquisition (IGNY) have entered into a definitive business combination agreement.
Weekly Spread Changes:
The table below shows weekly spread changes between April 22 and April 29, 2022.
The acquisition of Twitter (TWTR) by an entity wholly owned by Elon Musk for $44 billion or $54.20 per share in cash. We added TWTR as a potential deal to the Deals in the Works section on April 14, 2022, and the price after the news of the potential deal came out was $45.08.
The merger of BlueCity Holdings Limited (BLCT) with Multelements Limited for $60 million or $1.6 per share in cash. We added BLCT as a potential deal to the Deals in the Works section on April 18, 2022, and the price after the news of the potential deal came out was $1.27.
Deal Updates:
On April 25, 2022, UnitedHealth Group Incorporated (UNH) entered into an equity purchase agreement and related agreements relating to the sale of the claims editing business (ClaimsXten) of Change Healthcare (CHNG) to an affiliate of investment funds of TPG Capital for a base purchase price in cash equal to $2.2 billion.
On April 25, 2022, Tower Semiconductor (TSEM) announced that at its extraordinary general meeting of shareholders, certain proposals related to the agreement and plan of merger with Intel Corporation (INTC) were approved.
On April 26, 2022, shareholders of US Ecology (ECOL) approved the company’s merger with Republic Services (RSG) at a special meeting of shareholders.
On April 27, 2022, 51job (JOBS) announced that the company’s shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger with Garnet Faith Limited.
On April 28, 2022, Activision Blizzard (ATVI) announced that its stockholders approved Microsoft Corporation’s (MSFT) proposal to acquire Activision Blizzard.
Please do your own due diligence on deals with large spreads. Some of these large spreads might be related to regulatory issues or because of the way the deal is structured. We classify some of these deals as “special situation” deals in our merger arbitrage tool and provide additional details to help with the analysis. There may be unique situations related to special dividends, spinoffs, proration, etc. that need to be accounted for when looking at these spreads.
Expected to close in the second half of 2022 for a closing value of $60 million in a ‘going-private’ deal. Upon completion of the merger, shareholders of BlueCity Holdings will receive $1.6 per share in cash.
Expected to close in fiscal year 2023 for a closing value of $68.7 billion. Upon completion of the deal, shareholders of Activision Blizzard will receive $95.00 per share in cash.
Company Termination Fee (To be paid by Activision Blizzard): $2.27 billion
Parent Termination Fee (To be paid by Microsoft)
i) if termination notice is provided prior to January 18, 2023: $2 billion
ii) if termination notice is provided after January 18, 2023, and prior to April 18, 2023: $2.5 billion
iii) if termination notice is provided at any time after April 18, 2023: $3 billion
Update(s)
January 31, 2022: According to Bloomberg, The U.S. antitrust review of Microsoft Corp’s (MSFT) proposed acquisition of Activision Blizzard (ATVI) will be handled by the Federal Trade Commission (FTC).
March 3, 2022: Activision Blizzard (ATVI) and Microsoft (MSFT) each received a request for additional information and documentary material (“Second Request”) from the FTC in connection with the FTC’s review of the transaction. The effect of the Second Request is to extend the waiting period imposed under the HSR Act until the 30th day after substantial compliance by Activision Blizzard and Microsoft with the Second Request, unless the waiting period is terminated earlier by the FTC or as otherwise agreed between the parties and the FTC. Completion of the transaction remains subject to the termination or expiration of the waiting period under the HSR Act and the satisfaction or waiver of the closing conditions specified in the merger agreement. The parties expect to complete the transaction in Microsoft’s fiscal year ending June 30, 2023.
March 8, 2022: According to The Wall Street Journal, Federal prosecutors and securities regulators are investigating large bets that Barry Diller, Alexander von Furstenberg and David Geffen made on Activision Blizzard (ATVI) shares in January, days before the videogame maker agreed to be acquired by Microsoft (MSFT).
March 21, 2022: Activision Blizzard (ATVI) announced that the special meeting of stockholders, to consider and vote on a proposal to adopt the Agreement and Plan of Merger with Microsoft Corporation (MSFT), will be held on April 28, 2022.
March 31, 2022: According to The Wall Street Journal, four U.S. senators sent a letter to the Federal Trade Commission citing concern about Microsoft’s (MSFT) proposed acquisition of Activision Blizzard (ATVI), saying the deal could undermine employees’ calls for accountability over alleged misconduct at the videogame company.
April 14, 2022: SOC Investment, an activist shareholder group urged investors to vote against the proposed Activision Blizzard (ATVI) and Microsoft (MSFT) merger during Activision’s upcoming meeting on April 28.
April 28, 2022: Activision Blizzard (ATVI) announced that its stockholders approved Microsoft Corporation’s (MSFT) proposal to acquire Activision Blizzard.
Expected to close in the second half of 2022 for a closing value of $6.7 billion in a cash or stock deal. Under the terms of the agreement, Under the terms of the Agreement, Rentokil Initial will issue to Terminix shareholders at closing aggregate consideration comprised of approximately 643.29 million new Rentokil Initial shares (representing approximately 128.66 million American depository shares (“ADSs”), based on a 1:5 ADS to Rentokil Initial share ratio) and approximately US$1.3bn in cash. Based on Rentokil Initial’s 5-day average daily volume weighted share price and the 5-day average of the Sterling-US Dollar exchange rate both over the period spanning 6 to 10 December 2021 inclusive, this values the entire share capital of Terminix at US$6.7 billion, implying a value of US$55.00 per share of Terminix common stock, and represents an aggregate consideration mix of 80% stock and 20% cash. Terminix shareholders may elect to receive all cash or all stock consideration, subject to proration in the event of oversubscription. Each Terminix share for which no election or an invalid election is received will be deemed to have elected for all stock consideration. The value of the per share cash election and the value of the per share stock election will be equalised ahead of closing such that the value of each election choice will be substantially the same.
Expected to be completed during the first quarter of Take-Two’s Fiscal Year 2023, ending June 30, 2022, for a closing value of $12.7 billion in a cash plus stock deal. Under the terms of the agreement, Zynga stockholders will receive $3.50 in cash and $6.361 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing. The transaction is valued at $9.861 per share of Zynga common stock. The transaction includes a collar mechanism on the equity consideration, so that if Take-Two’s 20-day volume weighted average price (“VWAP”) ending on the third trading day prior to closing is in a range from $156.50 to $181.88, the exchange ratio would be adjusted to deliver total consideration value of $9.86 per Zynga share (including $6.36 of equity value based on that VWAP and $3.50 in cash). If the VWAP exceeds the higher end of that range, the exchange ratio would be 0.0350 per share, and if the VWAP falls below the lower end of that range, the exchange ratio would be 0.0406 per share.
Company Termination Fee: (i) if payable in connection with a termination of this Agreement by the Company prior to the Company No-Shop Period Start Date an amount equal to $400 million or (ii) if payable in any other circumstance, an amount equal to $550 million.
Parent Termination Fee: $550 million
Update(s)
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). Zynga also announced the expiration of the antitrust waiting period under Hart-Scott-Rodino in connection with the pending acquisition.
Expected to close in the second half of 2021 for a closing value of $13.28 billion. Upon completion of the merger, shareholders of Change Healthcare will receive $25.75 per share in cash.
March 24, 2021: Change Healthcare (CHNG) and UnitedHealth Group (UNH) each received a request for additional information and documentary materials from the DOJ in connection with the DOJ’s review of the Merger. The effect of the Second Request is to extend the waiting period imposed under the HSR Act until the 30th day after substantial compliance by the Company and UnitedHealth Group with the Second Request, unless the waiting period is terminated earlier by the DOJ or extended by the parties to the Merger.
May 6, 2021: The American Antitrust Institute (AAI) warned that UnitedHealth Group’s (UNH) planned acquisition of Change Healthcare (CHNG) could stifle competition. The nonprofit wrote in a letter to the Department of Justice (DOJ) that the deal is “likely to harm competition and consumers.”
August 12, 2021: Change Healthcare (CHNG) and UnitedHealth Group (UNH) entered into a timing agreement with the DOJ pursuant to which they agreed, among other things, not to consummate the Merger before 120 days following the date on which both parties have certified substantial compliance with the Second Request unless they have received written notice from the DOJ prior to the end of such 120-day period that the DOJ has closed its investigation of the pending Merger.
November 1, 2021: Change Healthcare (CHNG) and UnitedHealth Group (UNH) entered into an amendment to the Timing Agreement with the DOJ pursuant to which they agreed not to consummate the Merger before February 22, 2022, unless they have received written notice from the DOJ prior to such date that the DOJ has closed its investigation.
December 9, 2021: UnitedHealth Group Incorporated (UNH) delivered written notice to Change Healthcare (CHNG) that it was exercising its unilateral right to extend the Outside Date to April 5, 2022.
February 18, 2022: Change Healthcare (CHNG) and United Healthcare (UNH) disclosed that the U.S. Dept of Justice has until February 27 to sue to block the transaction.
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.”
April 5, 2022: Optum and Change Healthcare (CHNG) have agreed to extend their merger agreement to December 31, 2022. As part of the extension, Optum will pay a $650 million fee to Change Healthcare in the event the merger is unable to be completed because of the court’s decision. Change Healthcare will pay a special cash dividend of $2.00 per share to its shareholders at or about the time of the closing.
April 25, 2022: UnitedHealth Group Incorporated (UNH) entered into an equity purchase agreement and related agreements relating to the sale of the claims editing business (ClaimsXten) of Change Healthcare (CHNG) to an affiliate of investment funds of TPG Capital for a base purchase price in cash equal to $2.2 billion.
Expected to close in the second half of 2022 for a closing value of $7.1 billion. Upon completion of the merger, shareholders of Tenneco will receive $20 per share in cash.
Expected to close in the second half of 2022 for a closing value of $2.82 billion in a cash plus stock deal. Under the terms of the agreement, Whiting shareholders will receive 0.5774 shares of Oasis common stock and $6.25 in cash for each share of Whiting common stock owned. In connection with the closing of the transaction, Oasis shareholders will receive a special dividend of $15.00 per share.
April 18, 2022: The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), expired in connection with the previously announced proposed merger between Whiting Petroleum Corporation (WLL) and Oasis Petroleum (OAS).
Expected to close in the second quarter of 2022 for a closing value of $3.6 billion. Upon completion of the merger, shareholders of Bluerock Residential Growth will receive $24.25 per share in cash. Prior to the Acquisition, the Company separately intends to spin off its single-family rental business to its shareholders through the taxable distribution to shareholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust, Inc. (“BHOM”). The Company’s shareholders will receive shares of BHOM, with a current implied Net Asset Value estimated at $5.60 (based on the midpoint of the valuation range provided by Duff & Phelps, independent financial advisor to the Company’s board of directors), for each share of Company common stock. We are treating this as a special conditions deal by adding the spinoff value of $5.60 to the deal price to more accurately reflect what the shareholders will receive after the deal is completed.
April 12, 2022: Bluerock Residential Growth REIT (BRG) its stockholders approved the proposed acquisition of the company by affiliates of Blackstone Real Estate. The Acquisition will occur following the spin-off of the Company’s single-family rental business through the taxable distribution to common stockholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust. Company common stockholders will receive $24.25 in cash per share of company common stock in the ccquisition in addition to the BHM common stock that they will receive in the Spin-Off.
Expected to close during the second quarter of 2022 for a closing value of $201.47 million. Under the terms of the transaction, Metromile shareholders will receive Lemonade common shares at a ratio of 19:1.
February 1, 2022: Shareholders in the pay-per-mile auto insurer, Metromile (MILE) gave their approval to the impending acquisition of the company by insurtech Lemonade (LMND).
Expected to close in the first quarter of TD’s 2023 fiscal year for a closing value of $13.4 billion. Upon completion of the merger, shareholders of First Horizon Corporation will receive $25 per share in cash. If the transaction does not close prior to November 27, 2022, First Horizon shareholders will receive, at closing, an additional US$0.65 per share on an annualized basis for the period from November 27, 2022 through the day immediately prior to the closing.
Expected to close in the third quarter of calendar 2022 for a closing value of $236 million in an all stock deal. Under the terms of the transaction, each share of MBI common stock will be exchanged at closing for ordinary shares of Bioceres at a fixed ratio of 0.088.
Expected to close in 2022 for a closing value of $44 billion. Upon completion of the merger, shareholders of Twitter will receive $54.20 per share in cash.
Expected to close in 12 months for a closing value of $5.4 billion. Upon completion of the merger, shareholders of Tower Semiconductor will receive $53 per share in cash.
Company Termination Fee (To be paid by Tower Semiconductor): $206 million
Parent Termination Fee (To be paid by Intel Corporation): $353 million
Update(s)
April 25, 2022: Tower Semiconductor (TSEM) announced that at its extraordinary general meeting of shareholders, certain proposals related to the agreement and plan of merger with Intel Corporation (INTC) were approved.
Expected to close in the second half of 2022 for a closing value of $8.6 billion. Upon completion of the merger, shareholders of TEGNA will receive $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.
Expected to close in the first half of 2022 for a closing value of $26 billion. Upon completion of the merger, shareholders of Shaw Communications will receive C$40.5 per share in cash, or $32.40 based on the 80 US cents per CAD exchange ratio.
Termination Amount (To be paid by Shaw Communications): $800 million
Reverse Termination Amount (To be paid by Rogers Communications): $1.2 billion
Update(s)
May 20, 2021: Shaw Communications (SJR) announced that its shareholders have overwhelmingly voted in favour of the previously announced plan of arrangement for the proposed business combination with Rogers Communications (RCI).
August 5, 2021: According to Reuters, The Canadian regulator looking into telecom company Rogers Communications’ (RCI) planned purchase of Shaw Communications (SJR), has obtained court orders to advance its review.
September 29, 2021: According to Reuters, a Canadian regulator asked for information from the public on telecom company Rogers Communications’s (RCI) planned purchase of Shaw Communications (SJR) to check for competition concerns.
March 3, 2022: Canada’s industry minister, François-Philippe Champagne, said that he will not permit the wholesale transfer of Shaw Communications’s (SJR) wireless licences to Rogers Communications (RCI) as part of a buyout bid for Shaw.
March 8, 2022: The chief executive of Rogers Communications (RCI) said that the company will work with regulators to ensure that the takeover of Shaw Communications (SJR) doesn’t eliminate Canada’s fourth-largest wireless carrier.
March 16, 2022: According to a report, Globalive Capital entered the race to buy Shaw Communication’s (SJR) wireless unit Freedom Mobile with a $3.75 billion offer in cash.
Expected to close in the fourth quarter of 2022 for a closing value of $1.8 billion. Upon completion of the merger, shareholders of MoneyGram International will receive $11 per share in cash.
Company Termination Fee (To be paid by MoneyGram International): $32.8 million
However, in the event that (a)(i) this Agreement is terminated pursuant to a Change in Recommendation or if the Company receives a Superior Proposal and (ii) the Company enters into an agreement with an Exempted Person with respect to a Company Superior Proposal, and (b) if the counterparty to a transaction giving rise to the obligation to pay the Company Termination Fee (ii) (Future Transactions) is an Exempted Person on the date this Agreement is terminated, then in either instance, the Company Termination Fee shall be an amount in cash equal to $16,400,000 (provided, however, that in the event such Exempted Person is a Prior Bidder, the Company Termination Fee payable pursuant to either the foregoing clause (a) or (b) shall be an amount in cash equal to $30,000,000).
Parent Termination Fee (To be paid by Madison Dearborn Partners): $65.5 million
If a Parent Termination Fee is owed pursuant to Section 7.2(c)(i) (End Date) or Section 7.2(c)(iv) (Money Transfer Permit Denial), the Parent Termination Fee shall mean an amount in cash equal to $30 million.
Update(s)
March 16, 2022: The 30-day “go-shop” period expired under the terms of the Agreement and Plan of Merger between MoneyGram International and Madison Dearborn Partners.
April 21, 2022: The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James announced that they are filing a lawsuit against MoneyGram International (MGI) and MoneyGram Payment Systems for systemically and repeatedly violating various consumer financial protection laws and leaving families high and dry.
Expected to close between October and December 2021 for a closing value of $8.05 billion. Upon completion of the merger, PNM Resources shareholders will receive $50.30 in cash.
February 12, 2021: PNM Resources (PNM) shareholders voted overwhelmingly to approve the merger agreement with AVANGRID (AGR) at a special shareholders meeting.
April 21, 2021: AVANGRID (AGR) announced that it has received Federal Energy Regulatory Commission (FERC) approval for its proposed PNM Resources (PNM) merger.
May 6, 2021: The Public Utility Commission of Texas (PUCT) voted to approve the unanimous stipulation and agreement among parties for the merger of PNM Resources (PNM), including its Texas utility subsidiary, Texas-New Mexico Power Company (TNMP), with AVANGRID (AGR).
May 26, 2021: PNM Resources (PNM) and AVANGRID (AGR) received approval from the sixth regulatory entity, the Nuclear Regulatory Commission (NRC), for their proposed merger.
August 25, 2021: AVANGRID (AGR) and PNM Resources (PNM) announced additional support for the Stipulation agreement in the New Mexico Public Regulation Commission (NMPRC) proceeding to review the merger between the parent company of the Public Service Company of New Mexico (PNM), PNM Resources and AVANGRID.
November 13, 2021: PNM Resources (PNM) and Avangrid (AGR) said that they will accept all conditions recommended by a Public Regulation Commission hearing examiner if the five-member commission decides to approve their proposed merger.
December 2, 2021: The New Mexico Public Regulation Commission (NMPRC) began its consideration of the merger application involving PNM Resources (PNM) and AVANGRID (AGR) during its regular open meeting.
December 3, 2021: PNM Resources (PNM) and AVANGRID (AGR) answered open questions at a news conference about their proposed merger and addressed some concerns heard at the New Mexico Public Regulation Commission open meeting.
December 9, 2021: New Mexico utility regulators voted to reject Avangrid (AGR) proposed acquisition of PNM Resources (PNM), saying the deal’s risks outweighed its promised benefits to state ratepayers.
January 3, 2022: PNM Resources (PNM) and Avangrid (AGR) entered into an amendment of their merger agreement extending the end date to April 20, 2023. Additionally, the companies have filed a Notice of Appeal with the New Mexico Supreme Court of the December 2021 New Mexico Public Regulation Commission (NMPRC) order to reject a stipulated agreement reached with parties in the companies’ application for approval of the merger. We have extended the closing date for this deal to the end of the second quarter of 2022.
Expected to close by the end of 2021 or early 2022 for a closing value of $4.49 billion. Upon completion of the merger, shareholders of Sanderson Farms will receive $203 per share in cash.
Parent Equity Financing Termination Fee: $300 million
Parent Debt Financing Termination Fee: $250 million
Antitrust Termination Fee: $250 million
Update(s)
October 21, 2021: Sanderson Farms (SAFM) announced that its stockholders approved the previously announced agreement for a joint venture between Cargill and Continental Grain to acquire Sanderson Farms for $203 per share in cash.
October 27, 2021: Sanderson Farms (SAFM) has received regulatory approvals from each of the Ministry of Commerce of the People’s Republic of China and the Federal Economic Competition Commission of Mexico in connection with the transactions contemplated by the Agreement and Plan of Merger.
December 20, 2021: Sanderson Farms (SAFM) and Cargill and Continental Grain Company each received a request for additional information and documentary material from the DOJ in connection with the DOJ’s review of the transaction contemplated by the Merger Agreement. Issuance of the Second Request extends the waiting period under the HSR Act until 30 days after both the Company and Parent have substantially complied with the Second Request, unless the waiting period is terminated earlier by the DOJ or extended by agreement of the Company and Parent. The parties expect that the Merger will be completed in the first half of 2022.
Expected to close in the second half of 2022 for a closing value of $745.24 million. Upon completion of the merger, shareholders of Neophotonics Corporation will receive $16.00 per share in cash.
January 21, 2022: Lumentum Holdings (LITE) and NeoPhotonics Corporation (NPTN) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) with respect to Lumentum’s pending transaction with NeoPhotonics.
Expected to close in the fourth quarter of 2021 for a closing value of $6.5 billion in a cash plus stock deal. Under the terms of the agreement, MKS will acquire Atotech for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share.
December 14, 2021: MKS Instruments (MKSI) and Atotech Limited (ATC) reported that the pending acquisition has received the approval, or indication of imminent approval, from 12 out of 13 global antitrust regulatory authorities, which approvals are conditions to the closing of the transaction. In China, the remaining jurisdiction, MKS and Atotech are continuing to work constructively with the State Administration for Market Regulation (“SAMR”), and now anticipate closing the acquisition in the first quarter of 2022.
April 1, 2022: Atotech Limited (ATC) announced that it has agreed to extend the date for completing MKS Instruments (MKSI) pending acquisition of Atotech to September 30, 2022 from March 31, 2022. The extension is intended to allow additional time for the regulatory approval from China’s State Administration for Market Regulation (“SAMR”).
Expected to close in the fourth quarter of 2022 for a closing value of $8.1 billion. Upon completion of the merger, shareholders of South Jersey Industries will receive $36 per share in cash.
Expected to close within the half of 2022 for a closing value of $6.2 billion. Upon completion of the merger, shareholders of Vonage Holdings will receive $21 per share in cash.
Expected to close by the end of 2021 for a closing value of $2.6 billion in an all stock deal. Under terms of the agreement, Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share they own.
August 4, 2021: New York Community Bancorp (NYCB) and Flagstar Bancorp (FBC) jointly announced that, at their respective special meetings of shareholders, they each received the necessary shareholder approval for the consummation of their planned merger.
December 31, 2021: Since this deal has not yet been completed, we have extended the closing date to March 31, 2022.
Expected to close in the third quarter of 2022 for a closing value of $10.74 billion in a stock plus cash deal. Under the terms of the agreement, each share of HR common stock will be exchanged for one share of HTA common stock, at a fixed ratio. In addition, a special cash dividend of $4.82 per share will be distributed to HTA shareholders.
Expected to close later this year for a closing value of $5.4 billion. Upon completion of the merger, shareholders of Mandiant will receive $23 per share in cash.
Company Termination Fee (To be paid by Mandiant): $197 million
Parent Termination Fee (To be paid by Alphabet): Parent shall pay to the Company, (A) if such termination notice is delivered on or prior to 11:59 p.m. on March 7, 2023 (Termination Date), an amount equal to $328 million, (B) if such termination notice is delivered at any time after 11:59 p.m. on March 7, 2023 but on or prior to 11:59 p.m. on June 7, 2023, an amount equal to $394 million and (C) if such termination notice is delivered at any time after 11:59 p.m. on June 7, 2023 (Extended Termination Date), an amount equal to $460 million.
Update(s)
April 20, 2022: Mandiant (MNDT) and Google (GOOG) each received a request for additional information from the DOJ in connection with the DOJ’s review of the Merger. The issuance of the Second Request extends the waiting period under the HSR Act until 30 days after both Mandiant and Google have substantially complied with the Second Request, unless the waiting period is terminated earlier by the DOJ or extended by agreement of Mandiant and Google.
Expected to close in the second half of 2022 for a closing value of $16 billion. Upon completion of the merger, shareholders of Nielsen Holdings will receive $28 per share in cash.
April 6, 2022: Nielsen (NLSN) holder WindAcre said it plans to take steps to block the sale of the TV measurement company to a private equity consortium.
April 14, 2022: WindAcre Partners disclosed on April 14 that it has raised its stake in Nielsen Holdings (NLSN) to 25% as it continues to oppose the deal.
Expected to close by mid-2022 for a closing value of $16.5 billion. Upon completion of the merger, shareholders of Citrix Systems will receive $104 per share in cash.
April 21, 2022: Citrix Systems (CTXS) announced that its stockholders voted to approve Citrix’s pending acquisition by affiliates of Vista Equity Partners and Evergreen Coast Capital Corporation.
Expected to close in the second or third quarter of 2022 for a closing value of $735 million in an all stock deal. Under the terms of the agreement, the companies will combine in an all-share transaction pursuant to which Enerflex will acquire all of the outstanding common stock of Exterran on the basis of 1.021 Enerflex common shares for each outstanding share of common stock of Exterran.
Expected to close in the third quarter of 2022 for a closing value of $383.29 million. Upon completion of the merger, shareholders of GTY Technology Holdings will receive $6.30 per share in cash.
Expected to close toward the end of Medtronic’s current fiscal year for a closing value of $1.1 billion. Upon completion of the merger, shareholders of Intersect ENT will receive $28.25 per share in cash.
Expected to close toward the end of Medtronic’s current fiscal year for a closing value of $1.1 billion. Upon completion of the merger, shareholders of Intersect ENT will receive $28.25 per share in cash.
September 22, 2021: Intersect ENT (XENT) and Medtronic (MDT) each received a request for additional information and documentary materials from the FTC in connection with the FTC’s review of the Merger. The effect of the Second Request is to extend the waiting period imposed by the HSR Act until 30 days after Intersect ENT and Medtronic have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC. Both parties intend to continue to work cooperatively with the FTC in its review.
March 23, 2022: In connection with the Merger and the FTC review process, Intersect ENT (XENT) and Hemostasis have agreed on the material terms of a Sale and Purchase Agreement, under which Hemostasis would agree to acquire the Fiagon Business from Intersect ENT. Intersect ENT and Medtronic (MDT) also anticipate providing certain transition services in connection with the sale of the Fiagon Business. The consummation of the sale of the Fiagon Business to Hemostasis would be expressly cross-conditioned on the closing of the Merger.
Expected to close in the first quarter of 2022 for a closing value of $6.84 billion in a cash plus stock deal. Under the terms of Coherent’s merger agreement with II-VI, each share of Coherent common stock will be exchanged for $220.00 in cash and 0.91 of a share of II-VI common stock at the completion of the transaction.
Company Termination Fee (To be paid by Coherent): $108.8 million
Parent Termination Fee (To be paid by II-VI Incorporated): $337.7 million
Parent China Regulatory Termination Fee: $500 million
Update(s)
May 12, 2021: II-VI Incorporated (IIVI) and Coherent (COHR) confirmed the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the pending transaction.
August 25, 2021: Coherent (COHR) was notified, that its pending merger with II-VI Incorporated (IIVI) received unconditional clearance by the Federal Cartel Office in Germany.
February 9, 2020: II-VI Incorporated (IIVI) reported that the pending acquisition of Coherent (COHR) has received the approval, or indication of imminent approval, from 3 out of 4 global antitrust regulatory authorities, which approvals are conditions to the closing of the transaction. In China, the remaining jurisdiction, II-VI and Coherent are continuing to work constructively with the State Administration for Market Regulation, and now anticipate closing the acquisition by the middle of the second calendar quarter of 2022.
Expected to close in the fourth quarter of 2022 for a closing value of $146.5 million. Upon completion of the merger, shareholders of Randolph Bancorp will receive $27 per share in cash.
Expected to close in the second half of 2022 for a closing value of $6.2 billion. Upon completion of the merger, shareholders of LHC Group will receive $170 per share in cash.
Expected to close in the second half of 2022 for a closing value of $6.5 billion in a cash plus stock deal. Under the terms of the agreement, CMC Materials shareholders will receive $133.00 in cash and 0.4506 shares of Entegris common stock for each share of CMC Materials common stock they own.
January 31, 2022: The HSR Waiting Period applicable to the consummation of the Merger between CMC Materials (CCMP) and Entegris (ENTG) expired on January 31, 2022.
Expected to close in the second quarter of 2022 for a closing value of $5.2 billion. Upon completion of the merger, shareholders of Rogers Corportaion will receive $277 per share in cash.
January 25, 2022: Rogers Corporation (ROG) announced that, its shareholders voted to approve the previously announced acquisition of Rogers by DuPont de Nemours (DD).
Expected to close in the second half of 2022 for a closing value of $6.2 billion. Upon completion of the merger, shareholders of Datto Holding will receive $35.50 per share in cash.
Expected to close in the second half of 2022 for a closing value of $6.9 billion. Upon completion of the deal, shareholders of SailPoint Technologies Holdings will receive $65.25 per share in cash.
Company Termination Fee: $212.45 million (If this Agreement is terminated by the Company before May 26, 2022 to enter into a definitive agreement with respect to a Superior Proposal received from an Excluded Party, then the “Company Termination Fee” shall be $81.75 million)
Expected to close in the second quarter of 2022 for a closing value of $291.3 million. Cedar Realty Trust entered into an agreement to sell a portfolio of 33 grocery-anchored shopping centers to a joint venture between a fund managed by DRA Advisors LLC and KPR Centers for $840.0 million. After completion of the above-described transactions, Cedar Realty Trust and its remaining assets will be sold to Wheeler Real Estate Investment Trust for $29.00 per share in cash, which will be distributed to shareholders upon completion.
Expected to close in the second half of 2022 for a closing value of $2.3 billion. Upon completion of the merger, shareholders of GCP Applied Technologies will receive $32.00 per share in cash.
Expected to close in mid-2022 for a closing value of $199.72 million. Upon completion of the merger, shareholders of Blueknight Energy Partners will receive $4.65 per share in cash.
Expected to close by the end of the calendar year for a closing value of $3.7 billion. Upon completion of the merger, shareholders of Meritor will receive $36.50 per share in cash.
Company Termination Fee (To be paid by Meritor): $73.5 million
Parent Termination Fee (To be paid by Cummins): $160 million
Update(s)
April 6, 2022: The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), expired in connection with the previously announced proposed merger between Meritor (MTOR) and Cummins (CMI).
Expected to close early in 2022 for a closing value of $4.8 billion. Upon completion of the merger, shareholders od Welbilt will receive $24.00 per share in cash.
September 30, 2021: Welbilt (WBT) announced that the proposal to adopt and approve the Merger Agreement with Ali Holding was approved by Welbilt stockholders.
March 3, 2022: Welbilt (WBT) announced that it has entered into a definitive agreement to sell its Manitowoc Ice business to Pentair (PNR) for approximately $1.6 billion in cash, on a cash free and debt free basis, subject to customary post-closing adjustments. Commenting on the transaction, Bill Johnson, Welbilt’s President and CEO, said, “We believe that this transaction is a good outcome for both Welbilt and Manitowoc Ice. We are confident that the successful closing of this transaction will pave the way for Welbilt to complete its sale to Ali Group, while Manitowoc Ice will benefit from Pentair’s focus on water solutions and its diversified customer base and product lines.”
Expected to close in the first half of 2022, for a closing value of $10.7 billion. Upon completion of the merger, shareholders of Anaplan will receive $66 per share in cash.
Expected to close in the third quarter of 2022 for a closing value of $142.1 million in a cash plus stock deal. Under the terms of the Merger Agreement, Prudential shareholders will receive Fulton common stock based on a fixed exchange ratio of 0.7974 Fulton shares and $3.65 in cash for each Prudential share they own.
Expected to close in calendar year 2022 for a closing value of $28.4 billion. Upon completion of the merger, shareholders of Cerner Corporation will receive $95 per share in cash.
February 2, 2022: Oracle voluntarily withdrew its Premerger Notification and Report Form to provide the Antitrust Division with additional time for review and then refiled its Premerger Notification and Report Form on February 4, 2022. The applicable waiting period under the HSR Act with respect to the purchase of Shares in the Offer and the Merger is now scheduled to expire on February 22, 2022, unless earlier terminated by the Antitrust Division or if Oracle receives a Second Request from the Antitrust Division prior to that time.
March 30, 2022: With respect to the acquisition of Cerner Corporation (CERN), Oracle (ORCL) received unconditional clearance from the German Federal Ministry for Economic Affairs and Climate Action.
April 5, 2022: With respect to the acquisition of Cerner Corporation (CERN), Oracle (ORCL) received unconditional clearance of the transaction “Foreign Antitrust Laws—Canada” from the Commissioner, who issued an advance ruling certificate under subsection 102(1) of the Competition Act.
April 8, 2022: With respect to the acquisition of Cerner Corporation (CERN), Oracle (ORCL) received unconditional clearance from the National Defense Council (Consiliul Suprem de Apărare al Ţării) in Romania.
April 11, 2022: Oracle Corporation (ORCL) announced that it has extended its tender offer in connection with the acquisition of Cerner Corporation (CERN) until May 11, 2022.
April 22, 2022: Oracle’s (ORCL) planned purchase of Cerner (CERN) has been filed with the European Commission and the EC has a provisional deadline of June 1, 2022.
Expected to close in the fourth quarter of 2022 for a closing value of $11.6 billion. Upon completion of the merger, shareholders of Alleghany will receive $848.02 per share in cash.
If this Agreement is terminated, the Agreement shall become void and of no effect with no liability on the part of any party.
Update(s)
April 13, 2022: According to Reuters, Alleghany (Y) shareholder, Shiva Stein has sued to block Berkshire’s (BRK.A, BRK.B) buyout over lack of disclosures.
April 18, 2022: Alleghany Corporation (Y) announced the end of the “go-shop” period under the previously announced definitive merger agreement with Berkshire Hathaway (BRK.A, BRK.B). Under the terms of the agreement, Alleghany and its representatives were permitted to solicit and consider alternative acquisition proposals from third parties until April 14, 2022.
Expected to close in the second quarter of 2022 for a closing value of $97.44 million. Upon completion of the merger, shareholders of Summer Infant will receive $12.00 per share in cash.
Expected to close in the third quarter of 2022 for a closing value of $12.8 billion. Upon completion of the merger, shareholders of American Campus Communities will receive $65.47 per share in cash.
Company Termination Payment: $278 million (The Company Termination Payment shall be $139 million in the event this Agreement is terminated by the Company prior to the Cut-Off Time in order to enter into a definitive agreement with an Excluded Party providing for the implementation of a Superior Proposal.)
Expected to close by mid-2022 for a closing value of $250 million. Upon completion of the merger, shareholders of Checkmate Pharmaceuticals will receive $10.5 per share in cash.
Expected to close in or prior to the third quarter of 2022 for a closing value of $2 billion. Upon completion of the merger, shareholders of Tivity Health will receive $32.50 per share in cash.
Expected to close by mid-2022 for a closing value of $4.5 billion in an all stock deal. Under the terms of the agreement, Umpqua shareholders will receive 0.5958 of a share of Columbia stock for each Umpqua share they own.
January 26, 2022: Columbia Banking System (COLB) and Umpqua Holdings Corporation (UMPQ) jointly announced that they have received all required shareholder approvals related to the proposed combination between Columbia and Umpqua.
Expected to close in the second or third quarter of 2022 for a closing value of $5.8 billion. Upon completion of the merger, shareholders of Cornerstone Building Brands will receive $24.65 per share in cash.
Expected to close in the second quarter of 2022 for a closing value of $183.22 million. Upon completion of the merger, shareholders of IntriCon Corporation will receive $24.25 per share in cash.
Expected to close in the secon calendat quarter of 2022 for a closing value of $12.34 billion. Under the terms of the agreement, AspenTech shareholders will receive approximately $87 per share in cash and 0.42 shares of common stock of the new AspenTech, a newly formed company, for each share of AspenTech common stock they own, which implies total consideration of approximately $160 per AspenTech share. We have added this as a special conditions deal since the stock portion of the transaction will be determined only after the new company is formed.
December 2, 2021: Aspen Technology (AZPN) announced, in connection with its proposed transaction with Emerson (EMR), the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and antitrust clearance from the Austrian Federal Competition Authority.
Expected to close in the third quarter of 2022 for a closing value of $1.1 billion. Upon completion of the deal, shareholders of Sierra Oncology will receive $55 per share in cash.
Expected to close in the third quarter of 2022 for a closing value of $8.3 billion. Upon completion of the merger, shareholders of CDK Global will receive $54.87 per share in cash.
Expected to close in the first half of 2022 for a closing value of $8.33 billion in a cash plus stock deal. Under the terms of the agreement, Ortho shareholders will receive $7.14 in cash per common share and 0.1055 shares of common stock in the combined company for each Ortho common share.
Orca Termination Payment (To be paid by Ortho Clinical Diagnostics Holdings): $46.88 million
Laguna Termination Payment (To be paid by Quidel Corporation): $207.84 million
Update(s)
January 24, 2022: Further to the joint announcement by Ortho Clinical Diagnostics Holdings (OCDX) and Quidel Corporation (QDEL), Ortho announced that, as a preliminary procedural step in the process of implementing the combination, Ortho has scheduled a hearing of the High Court of Justice of England and Wales to seek the UK Court’s consent and directions to convene a meeting of Ortho shareholders as part of the scheme of arrangement of Ortho proposed to be made pursuant to Part 26 of the Companies Act 2006 for the purpose of implementing the business combination.
February 9, 2022: Ortho Clinical Diagnostics Holdings (OCDX) announced, in connection with its proposed transaction with Quidel Corporation (QDEL), the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”).
Expected to close in the second quarter of 2022 for a closing value of $570 million. Upon completion of the merger, shareholders of Tufin Software Technologies will receive $13.00 per share in cash.
Company Termination Fee: $10 million (If the Merger Agreement is terminated in connection with the Company entering into an alternative acquisition agreement in respect of a Superior Proposal entered into during the “go-shop” period)
(If the company breaches its representations, warranties or covenants in a manner that would cause the related closing conditions to not be met, the company will be required to pay Parent a termination fee of $17.2 million)
Expected to close in the first half of 2022 for a closing value of $5.1 billion. Upon completion of the merger, shareholders of American National Group will receive $190 per share in cash.
Expected to close in the second half of 2022 for a closing value of $2.75 billion. Upon completion of the merger, shareholders of Renewable Energy Group will receive $61.50 per share in cash.
April 11, 2022: The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), expired in connection with the previously announced proposed merger between Renewable Energy Group (REGI) and Chevron Corporation (CVX).
Expected to close in the third quarter of 2022 for a closing value of $1.2 billion. Upon completion of the merger, shareholders of Natus Medical Incorporated will receive $33.5 per share in cash.
Expected to close in the second calendar quarter of 2022 for a closing value of $2.6 billion. Upon completion of the merger, shareholders of Bottomline Technologies will receive $57 per share in cash.
Expected to close in the first half of 2022 for a closing value of $960 million. Upon completion of the merger, shareholders of Antares Pharma will receive $5.60 per share in cash.
Expected to close in the third quarter of 2022 for a closing value of $137.1 million. Upon completion of the merger, shareholders of Manning & Napier will receive $12.85 per share in cash.
Expected to close in 2022 for a closing value of $1.1 billion in a cash plus stock deal. Under the terms of the agreement, TriState Capital common stockholders will receive $6.00 cash and 0.25 Raymond James shares for each share of TriState Capital common stock.
Expected to close in the second quarter of 2022 for a closing value of $5.8 billion. Upon completion of the merger, shareholders of Preferred Apartment Communities will receive $25 per share in cash.
Company Termination Payment (To be paid by Preferred Apartment Communities): $80 million
The Company Termination Payment shall be $25 million in the event this Agreement is terminated by the Company prior to the Cut-Off Time in order to enter into a definitive agreement with an Excluded Party providing for the implementation of a Superior Proposal.
Parent Termination Payment (To be paid by Blackstone Real Estate Income Trust): $300 million
Expected to close in the first half of 2022 for a closing value of $5.8 billion. Upon completion of the merger, shareholders of Mimecast Limited will receive $80.00 per share in cash.
Company Termination Payment: (i) $86.73 million if this Agreement is terminated by the Company (i) prior to the Cut-Off Date so as to enter into a definitive agreement for a Superior Proposal made by an Excluded Person or its Affiliates, which Superior Proposal was made prior to the Cut-Off Date, or (ii) $216.83 million in all other cases.
Buyer Termination Payment: $289.1 million
Update(s)
January 13, 2022: Proofpoint offered to buy Mimecast (MIME) for $92.50 per share. Mimecast rejected the offer as it believed a transaction may have too many potential antitrust issues.
March 11, 2022: Mimecast Limited (MIME) announced that its shareholders voted to approve the company’s pending acquisition by funds advised by Permira.
March 31, 2022: Mimecast (MIME) received written notice from the Committee on Foreign Investment in the United States (“CFIUS”) that there are no unresolved national security concerns and that CFIUS has concluded action under Section 721 of the Defense Production Act of 1950, as amended, with respect to the Transaction.
Expected to close by the end of calendar 2022 for a closing value of $3.3 billion. Upon completion of the merger, shareholders of Plantronics will receive $40 per share in cash.
Expected to close in the first half of 2022 in a going-private transaction for a closing value of $3.63 billion. Upon completion of the merger, shareholders of 51job will receive $79.05 per share in cash.
Company Termination Fee (To be paid by 51job): $80 million
Merger Sub Termination Fee (To be paid by Garnet Faith Limited): $160 million
Update(s)
November 8, 2021: 51job (JOBS) announced that certain members of the buyer consortium that formed Garnet Faith Limited to acquire the Company, have been in consultation with Chinese regulators on recent regulatory changes in China that may be applicable to the Company and the Proposed Transaction. The consultation process by these buyer consortium members is currently ongoing and a clear timeline to its completion cannot be provided at this time.
December 31, 2021: Since this deal has not yet been completed, we have extended the closing date to March 31, 2022.
December 31, 2021: Since this deal has not yet been completed, we have extended the closing date to March 31, 2022.
January 12, 2022: 51job (JOBS) announced that its Board of Directors received a proposal letter from Garnet Faith Limited in connection with the proposed merger. In the Proposal Letter, the Merger Sub proposed to reduce the merger consideration from US$79.05 in cash per common share to US$57.25 in cash per common share.
March 1, 2022: 51job (JOBS) entered into an amendment to its previously announced Agreement and Plan of Merger with Garnet Faith Limited. Pursuant to the terms of the Amended Merger Agreement, the Continuing Shares and the Dissenting Shares, will be cancelled and cease to exist, in exchange for the right to receive US$61.00 in cash per Share without interest.
April 27, 2022: 51job (JOBS) announced that the company’s shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger with Garnet Faith Limited.
Expected to close in the first quarter of 2022 for a closing value of $82.8 million. Upon completion of the merger, shareholders of Elmira Savings Bank will receive $23.10 per share in cash.
Expected to close in the second quarter of 2022 for a closing value of $350 million. Upon completion of the merger, shareholders of Huttig Building Products will receive $10.70 per share in cash.
Expected to close in the third quarter of 2022 for a closing value of $7.6 billion. Upon completion of the merger, shareholders of PS Business Parks will receive $187.50 per share in cash
Company Termination Fee: $220 million (The Company Termination Fee shall be $110 million in the event this Agreement is terminated by the Company prior to the Cut-Off Time.)
Expected to close during the second calendar quarter of 2022 for a closing value of $260 million. Upon completion of the merger, shareholders of Vidler Water Resources will receive $15.75 per share in cash.
Expected to close by the second quarter for a closing value of $2.2 billion. Upon completion of the merger, shareholders of US Ecology will receive $48 per share in cash.
Expected to close in the second quarter of 2022 for a closing value of $41.4 million. Upon completion of the merger, shareholders of The National Security Group will receive $16.35 per share in cash. The price per share is subject to downward adjustment if the combined statutory capital and surplus of NSG’s insurance subsidiaries is less than $43 million; VR Holdings can terminate the agreement if combined statutory capital and surplus falls below $38.7 million. The insurance subsidiaries are expected to exceed the $43 million threshold in their statutory financial statements as of December 31, 2021.
Expected to close in the first quarter of 2022 for a closing value of $1.52 billion in an all stock deal. Under the terms of the agreement, Golden Nugget Online Gaming stockholders would receive a fixed ratio of 0.365 shares of New DraftKings’ Class A Common Stock for each Common Share of Golden Nugget Online Gaming they hold on the record date.
April 1, 2022: DraftKings (DKNG) and Golden Nugget Online Gaming (GNOG) continue to pursue the remaining gaming regulatory approvals necessary to consummate the Acquisition. Accordingly, DraftKings now expects the Acquisition to be consummated on or prior to May 31, 2022, subject to the satisfaction or waiver of closing conditions.
Expected to close in the second quarter of 2022 for a closing value of $1.5 billion in an all stock deal. Under the terms of the definitive merger agreement, Allegiance shareholders will receive 1.4184 shares of CBTX common stock for each share of Allegiance common stock they own.
Expected to close in the second half of 2022 for a closing value of $1.18 billion in an all stock deal. Under the terms of the agreement, shareholders of Neenah will receive 1.358 shares of SWM common stock for each share of Neenah common stock owned.
Expected to close in the second half of 2022 for a closing value of $6.6 billion in a cash plus stock deal. Under the terms of the agreement, Spirit equity holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own.
March 10, 2022: Legislators including Sen. Elizabeth Warren, Bernie Sanders and Rep. Alexandria Ocasio-Cortez are asking for the Department of Justice to investigate Frontier Airlines (ULCC) planned purchase of Spirit Airlines (SAVE) to see if would hurt competition.
April 5, 2022: Spirit Airlines (SAVE) announced that it has received an unsolicited proposal from JetBlue Airways (JBLU) to acquire all of the outstanding shares of Spirit’s common stock in an all-cash transaction for $33.00 per share.
April 7, 2022: The Board of Directors of Spirit Airlines (SAVE) determined that the unsolicited proposal received from JetBlue Airways (JBLU) could reasonably be likely to lead to a “Superior Proposal”. Spirit intends to engage in discussions with JetBlue with respect to JetBlue’s proposal.
April 13, 2022: Spirit (SAVE) received a request for additional information from the U.S. Department of Justice (DOJ) with respect to its proposed merger with Frontier (ULCC). A second request from the DOJ was expected for a transaction of this nature. Spirit remains bound by the terms of the merger agreement with Frontier and will continue to voluntarily provide information to the DOJ in order to facilitate its review of the proposed transaction.
Expected to close in the first half of 2022 for a closing value of $186 million in a cash or stock deal. Under the terms of the agreement, Partners stockholders may elect to receive $10.00 in cash or 0.4512 shares of OceanFirst common stock.
Expected to close in the second half of 2022 for a closing value of $105 million in a cash or stock deal. Under the terms of the agreement, each shareholder of Emclaire may elect to receive either $40.00 per share in cash or 2.15 shares of Farmers’ common stock, subject to an overall limitation of 70% of the shares being exchanged for Farmers’ shares and 30% for cash.
SPAC activity picked up a little last week with three new SPAC IPOs filed and five business combinations announced. As companies have started filing their first quarter earnings, we can see a change in the spreads for some deals. Multiple deals received required shareholder approvals last week. There was a significant change in the spread for the Zynga (ZNGA) – Take Two Interactive (TTWO) deal last week, probably caused by reports regarding the videogame industry sales that slipped year-over-year for a fifth straight month in March.
Disclaimer: I have long positions in Twitter (TWTR), First Horizon (FHN), Tower Semiconductor (TSEM), Healthcare Trust of America (HTA), TEGNA (TGNA) 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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