InsideArbitrage Event Driven Monitor – October 19, 2022

Quick updates on the event-driven strategies we follow on InsideArbitrage.

Merger Arbitrage

1. AVEO Oncology (AVEO) to be acquired by LG Chem for $440.99 million or $15.00 per share in cash.
2. Akouos (AKUS) to be acquired by Eli Lilly and Company (LLY) for $248.84 million. Under the terms of the agreement, Lilly will acquire Akouos for a purchase price of $12.50 per share in cash plus one non-tradeable contingent value right per share (“CVR”) that entitles the holder to receive up to an additional $3.00 in cash, for a total consideration of up to $15.50 per share in cash without interest.
3. Semtech Corporation (SMTC) and Sierra Wireless (SWIR) announced that each company has received a request for additional information and documentary material from the U.S. Department of Justice in connection with Semtech’s previously announced acquisition of Sierra Wireless.
4. According to Reuters, a U.S. Senate antitrust panel is expected to announce as soon as Tuesday a hearing on the merger of grocery giants Kroger (KR) and Albertsons (ACI), signaling growing scrutiny of the deal.
5. Shareholders of Zymergen (ZY) approved the company’s merger with Ginkgo Bioworks (DNA) at a special meeting of shareholders.
6. Shareholders of iRobot Corporation (IRBT) approved the company’s merger with Amazon (AMZN) at a special meeting of shareholders.
7. ChemoCentryx (CCXI) shareholders approved Amgen’s (AMGN) $3.7B acquisition of the company.
8. Shareholders of Micro Focus International (MFGP) approved the terms of the recommended all-cash offer by OpenText (OTEX).
9. Thoma Bravo completes the acquisition of Ping Identity (PING).

Deals In The Works

1. Sierra Metals Inc. (SMTS) announced that a special committee comprised of its independent directors has initiated a process to evaluate and consider the company’s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives
2. Buyout firms CDH Investments and PAG are considering bids for US-listed Chinese data center company Vnet Group (VNET).

Insider Purchases

1. Tony Wehner, the SVP and Chief Operating Officer of entertainment company Dave & Buster’s Entertainment (PLAY), purchased 14,823 shares at an average price of $33.86 totaling $501,913.
2. Jeremy Andrus, the Chief Executive Officer of wood pellet grills manufacturer Traeger, Inc. (COOK), purchased 148,878 shares at an average price of $2.90 totaling $431,151.
3. Stephen L. Eastman, the Director of industrial products company FASTENAL CO (FAST), purchased 1,000 shares at an average price of $43.88 totaling $43,885. Another Director also purchased 500 shares at an average price of $44.89 totaling $22,445.
4. Beat Kahli, the Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 25,000 shares at an average price of $6.84 totaling $171,000. The CEO also purchased 8,234 shares at an average price of $6.25 totaling $51,463.
5. Murray Stahl, the Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 17 shares at an average price of $2,052.68 totaling $34,896.
6. Darryl Schmidt, the Executive Vice President of regional bank Bancfirst Corp. (BANF), purchased 397 shares at an average price of $91.67 totaling $36,393.

Spinoffs

1. Joe Wolk, Chief Financial Officer of Johnson & Johnson (JNJ), mentioned plans to “rightsize” the firm during the Q3 2022 earnings call ahead of the anticipated split of its consumer health segment as a public company called Kenvue in 2023.

SPACs

1. Parsec Capital Acquisitions Corp. (PCX) announced the execution of an agreement and plan of merger with Enteractive Media Inc.
2. ION Acquisition Corp. 3 Ltd (IACC) filed a proxy statement to seek shareholder approval to liquidate early.

Stock Buyback Announcements

1. Lockheed Martin (LMT) announced an additional $14 billion share repurchase, representing around 12% of its market cap at announcement. It also increased the quarterly dividend by 7% to $3.00 per share.
2. Navigator Holdings Ltd. (NVGS) launches $50M stock buyback representing around 5% of its market cap at announcement.

C-Suite Transitions

Appointments

1. Amalgamated Financial (AMAL) – Jason Darby, Chief Financial Officer of the company, began serving as Chief Accounting Officer on an interim basis.
2. Purple Innovation (PRPL) – Keira Krausz signed an offer letter to become the Chief Marketing Officer of the company, effective November 1, 2022.
3. SomaLogic (SLGC) announced the appointment of Troy Cox, as Executive Chair of the Board.
4. Charah Solutions (CHRA) appointed Jonathan Batarseh, as Chief Financial Officer and Treasurer.
5. FIS (FIS) announced the appointment of Stephanie L. Ferris as President and Chief Executive Officer.
6. Gaming and Leisure Properties (GLPI) promoted Brandon Moore, its current Executive Vice President, and General Counsel, to Chief Operating Officer and Desiree Burke as Chief Financial Officer.
7. Coherent (COHR) announced that Dr. Julie Sheridan has been appointed as Chief Technology Officer.

Departures

1. SHF Holdings (SHFS) – Chris Fameree notified the company of his intent to voluntarily resign from his position as Chief Financial Officer.
2. ​ Faraday Future Intelligent Electric ​(FFIE) – Interim Chief Financial Officer Becky Roof​, resigned from the company
3. XPEL (XPEL) – Brooks Meltzer, Vice President, General Counsel and Corporate Secretary, has separated from the company.
4. Leafly Holdings (LFLY) – Samuel Martin resigns from his position as Chief Operating Officer.
5. Papa John’s International (PZZA) – Marvin Boakye, the Chief People and Diversity Officer notified the company of his intention to resign from his position, effective November 4, 2022.
6. Amalgamated Financial (AMAL) – Frank DeMaria notified his decision to resign from his position as the Chief Accounting Officer.
7. Peloton (PTON) – Chief People Officer Shari Eaton is leaving the company

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