InsideArbitrage Event Driven Monitor – October 28, 2022
Quick updates on the event-driven strategies we follow on InsideArbitrage.
- Elon Musk completes the acquisition of Twitter (TWTR).
- Altra Industrial Motion (AIMC) to be acquired by Regal Rexnord Corporation (RRX) for $5 billion or $62.00 per share in cash.
- The acquisition of UserTesting (USER) by Thoma Bravo and Sunstone Partners for $1.3 billion or $7.50 per share in cash.
- Shareholders of Glory Star New Media Group Holdings Limited (GSMG) approved the company’s merger with Cheers at a special meeting of shareholders.
- Pzena Investment Management (PZN) announced that its stockholders approved the previously announced take-private transaction with Pzena Investment Management, LLC. The transaction is expected to close on October 31, 2022.
- The Paper Excellence Group and Resolute Forest Products (RFP) announced their intention to sell Resolute’s Thunder Bay pulp and paper mill to further facilitate the regulatory review process.
- Joe Foster, who manages active gold funds at investment firm VanEck, which is Yamana’s biggest shareholder has come out against Gold Fields’ (GFI) proposed takeover of Canada’s Yamana Gold (AUY).
- Rogers Communications (RCI), Shaw Communications (SJR) and Quebecor issued a statement saying mediation with Canada’s Competition Bureau to settle Rogers’ planned takeover of Shaw has failed.
Deal in the Works
- According to an 8K filing, AgroFresh Solutions (AGFS) agreed with Paine Schwartz Partners to pursue a transaction pursuant to which Paine Schwartz would acquire all of the outstanding common stock of the company for $3.00 per share in cash.
- Dr. David Goeddel, the Director of biotech NGM Biopharmaceuticals (NGM), purchased 123,820 shares at an average price of $4.81 totaling $595,428. We discussed Dr. Goeddel’s purchases in our last Insider Weekends article.
- Daniel Cancelmi, the EVP & Chief Financial Officer of hospital operator Tenet Healthcare (THC), purchased 11,000 shares at an average price of $43.07 totaling $473,770.
- Tobias Lutke, the Director of cryptocurrency broker Coinbase Global (COIN), purchased 5,573 shares at an average price of $66.96 totaling $373,168. He has been buying shares periodically though an established 10b5-1 plan.
- Gary Torgow, the Director of regional bank Huntington Bancshares (HBAN), purchased 16,835 shares at an average price of $14.75 totaling $248,385.
- Byron L. Boston, the CEO and Co-CIO of mortgage REIT Dynex Capital (DX), purchased 14,500 shares at an average price of $11.04 totaling $160,023.
- Steven A. Brass, the President and CEO of specialty chemicals company WD-40 Co. (WDFC), purchased 632 shares at an average price of $158.16 totaling $99,957.
- Lee R. Gibson, the President & CEO of regional bank Southside Bancshares (SBSI), purchased 2,000 shares at an average price of $33.22 totaling $66,440. Susan Elaine Anderson, the Director of the company, also purchased 2,000 shares at an average price of $31.36 totaling $62,720. She purchased these shares in her spouse’s IRA.
- Marjorie Magner, the Director of financial services company Ally Financial Inc. (ALLY), purchased 2,000 shares at an average price of $27.43 totaling $54,868.
- Wes Cummins, the CEO and Chairman of datacenter operator Applied Blockchain, Inc. (APLD), purchased 20,000 shares at an average price of $2.22 totaling $44,400. He purchased these shares indirectly through B. Riley Asset Management.
- Murray Hamilton Edwards, the Director of regional bank First Financial Bankshares (FFIN), purchased 1,000 shares at an average price of $37.73 totaling $37,733.
- Murray Stahl, the Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,143.66 totaling $30,011.
- Fortune Brands Home & Security (FBHS), announced it intends to change its name to Fortune Brands Innovations, which will go into effect shortly after the completion of the separation of the Cabinets business.
- Selina (SLNA) and BOA Acquisition Corp. (BOAS) announced the closing of their business combination.
Stock Buyback Announcements
- WEX Inc. (WEX) authorized an amended share repurchase program of up to $650 million of WEX’s common stock. This amendment indicates an increase of $500 million of common stock and shortens the duration to December 31, 2025, representing about 8% of its market cap at announcement.
- Carrier Global Corporation (CARR) announced that its Board of Directors approved a new $2 billion share repurchase program. This represents nearly 6.5% of its market cap at announcement.
- AutoNation, Inc. (AN) announced that its Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock. This represents around 17% of its market cap at announcement.
- FirstCash Holdings, Inc. (FCFS) announced the authorization of a new $100 million share repurchase plan, representing around 2.5% of its market cap at announcement.
- LKQ Corporation (LKQ) announced a $1 billion increase to the existing share repurchase program and extended the duration through October 25, 2025. This represents around 7% of its market cap at announcement.
- Shell plc (SHEL) announces the commencement of a $4 billion share buyback programme covering an aggregate contract term of approximately three months. This represents around 2% of its market cap at announcement.
- Baker Hughes (BKR) announced repurchase up to $2 billion of additional common units, increasing its existing share repurchase authorization, which was announced in July 2021, by $2 billion to $4 billion. This represents around 7% of its market cap at announcement. It also declared an increased quarterly cash dividend of $.19 per share of Class A common stock.
- Arrow Financial Corporation (AROW) approved a new stock repurchase program of up to $5 million of the Company’s common stock for the 2023 calendar year. This represents around 1% of its market cap at announcement.
- Perficient, Inc. (PRFT) expanded the company’s stock repurchase program by $60 million for a total repurchase program of $375 million and extended the expiration date of the program from December 31, 2022 to December 31, 2024. This represents around 2.5% of its market cap at announcement.
- Simply Good Foods (SMPL) appointed Shaun Mara to serve as its Chief Financial Officer
- Black Hills Corporation (BKH) announced that Kimberly F. Nooney to serve as Senior Vice President, Chief Financial Officer, and Treasurer effective April 1, 2023.
- Merck & Co (MRK) elected Robert M. Davis, Merck’s current Chief Executive Officer and President to serve as Chairman of the Board, effective December 1, 2022.
- Cassava Sciences (SAVA) announced the appointment of R. Christopher Cook, as Senior Vice President and General Counsel, effective on or before December 1, 2022.
- Etsy (ETSY) announced that Rachana Kumar, currently Etsy’s Vice President of Engineering, will assume the role of Chief Technology Officer effective January 1, 2023.
- Pathward Financial (CASH) announced that Sonja Theisen will succeed Glen W. Herrick as Chief Financial Officer effective as of April 30, 2023.
- Simply Good Foods Co (SMPL) announced that Richard W. Kinzley, Senior Vice President and Chief Financial Officer, will retire from the Company in mid-2023.
- CRISPR Therapeutics AG (CRSP) Lawrence O. Klein, resigned from his position as Chief Operating Officer.
- Etsy (ETSY) announced that Michael Fisher will step down from his role as Etsy’s Chief Technology Officer, effective December 31, 2022.
- TTEC Holdings (TTEC), announced that Regina Paolillo, Global Chief Operations Officer, is retiring from the company effective December 31, 2022.
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