InsideArbitrage Event Driven Monitor – October 26, 2022

Quick updates on the event-driven strategies we follow on InsideArbitrage. With earnings season upon us, we are starting to see an uptick in both insider buying and buyback activity.

Merger Arbitrage

1. Limestone Bancorp (LMST) to be acquired by Peoples Bancorp (PEBO) for $208.2 million in an all stock deal. Under the terms of the agreement, shareholders of Limestone will receive 0.90 shares of Peoples common stock for each share of Limestone common stock, and the Merger is expected to qualify as a tax-free reorganization for Limestone shareholders.
2. Canada imposed conditions on Rogers Communications’ (RCI) proposed remedy to overcome competition bureau concerns about its planned purchase of Shaw Communications (SJR).
3. PBF Logistics (PBFX) announced that the special meeting of stockholders will be on November 30, 2022.
4. Rio Tinto (RIO) has issued an open letter to the shareholders of Turquoise Hill Resources (TRQ), stating that Turquoise Hill Resources will need an additional $3.6B in funding over the next two years to unlock the long-term potential of the Oyu Tolgoi copper and gold project in Mongolia. Against that backdrop, Rio said its bid for Turquoise Hill is its best and final offer, which fully values the long-term potential of Oyu Tolgoi and the company.

Deal in the Works

1. Diffusion Pharmaceuticals (DFFN), a biopharmaceutical company announced that its Board of Directors has authorized a thorough review and evaluation of a range of potential strategic opportunities in the interest of enhancing stockholder value.
2. Aerojet Rocketdyne Holdings Inc (AJRD), is soliciting offers from potential suitors, including private equity firms, according to people familiar with the matter.

Insider Purchases

1. Robert W. Stallings, the Director of regional bank Texas Capital Bancshares (TCBI), purchased 14,900 shares at an average price of $55.85 totaling $832,192. Chief Risk Office Timothy J. Storms also purchased 4,400 shares at an average price of $57.21 totaling $251,724.
2. Teresa Finley, the Director of railroad United Pacific (UNP), purchased 1,380 shares at an average price of $188.26 totaling $259,799.
3. Kevin A. Stephens, the Director of cell tower REIT Crown Castle (CCI), purchased 2,000 shares at an average price of $123.50 totaling $247,000.
4. David B. Becker, the Chairman and CEO of regional bank First Internet Bancorp (INBK), purchased 10,000 shares at an average price of $23.60 totaling $236,000. President & COO Nicole S. Lorch also purchased 1,000 shares at an average price of $22.92 totaling $22,920.
5. Melissa D. Smith, the Director of Equifax (EFX), purchased 672 shares at an average price of $148.69 totaling $99,923.
6. Beat Kahli, the Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 18,971 shares at an average price of $8.38 totaling $158,886.
7. Johnny Trotter, the Director of regional bank First Financial Bankshares (FFIN), purchased 4,000 shares at an average price of $36.94 totaling $147,760.
8. Murray Stahl, the Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 13 shares at an average price of $2,181.79 totaling $28,363.

Spinoffs

1. Intel Corp’s (INTC) self-driving car unit Mobileye Global priced its initial public offering at $21 a share, a dollar above the top of its targeted range, according to people close to the deal.

SPACs

1. NaturalShrimp, Incorporated, a biotechnology aquaculture company and Yotta Acquisition Corporation (YOTA) announced the signing of a definitive agreement for a proposed merger of the two companies.
2. European Lithium AT Limited, a wholly owned subsidiary of European Lithium Ltd, and Sizzle Acquisition Corp (SZZL) have entered into a definitive agreement for a business combination that will result in the formation of Critical Metals Corp.
3. Grey Rock Investment Partners (GRNT) and Executive Network Partnering Corporation successfully closed the previously announced business combination.

Stock Buyback Announcements

1. Visa (V) authorized a new $12 billion share repurchase program representing around 3% of its market cap at announcement.
2. Viomi Technology (VIOT) announced a $10 million share repurchase program representing around 20% of its market cap at announcement.

C-Suite Transitions

Appointments

1. United-Guardian. (UG) appointed Beatriz Blanco as President and Chief Executive Officer of the company effective November 1, 2022.
2. PulteGroup (PHM) – Brandon Jones has been promoted to Executive Vice President and Chief Operating Officer, effective January 1, 2023.
3. Ares Capital Corp (ARCC) appointed Kort Schnabel, as Co-President.
4. HSBC Holdings plc (HSBC) announces Georges Elhedery appointed as Group Chief Financial Officer effective  January 1, 2023.
5. Cummins (CMI) announced that Marvin Boakye will join Cummins as Chief Human Resources Officer, effective November 7, 2022.
6. Peraso (PRSO) announced that it has named Mark Lunsford to the position of Chief Revenue Officer.
7. Electromed (ELMD),announced the appointment of Brad Nagel as Chief Financial Officer, effective November 14, 2022.

Departures

1. PulteGroup (PHM) announced that John J. Chadwick notified the company that he intends to retire as Executive Vice President and Chief Operating Officer, effective April 21, 2023.
2. Greenlight Capital (GLRE) announced that Laura Accurso, General Counsel, Corporate Secretary, and Chief Compliance Officer of the Employer, will separate from the company, effective December 31, 2022.
3. United Insurance Holdings (UIHC) announced that Brooke Shirazi has departed from the position of Chief Underwriting Officer.
4. Logitech (LOGI) – Nate Olmstead, Logitech’s Chief Financial Officer, plans to leave the company.

Disclaimer: 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.