InsideArbitrage Event Driven Monitor – October 4, 2022

Quick updates on all six event-driven strategies we follow on InsideArbitrage.

Merger Arbitrage

  1. The United Kingdom’s Investment Security Unit informed F-star Therapeutics (FSTX) and invoX Pharma that its investigation was complete and that the parties were cleared to proceed with the proposed transaction under the UK’s National Security and Investment Act (“NSIA”).
  2. The acquisition of LogicBio Therapeutics (LOGC) by Alexio, AstraZeneca Rare Disease. Under the terms of the agreement, Alexion, through a subsidiary, will initiate a cash tender offer to acquire all outstanding shares of LogicBio for $2.07 per share.
  3. The acquisition of Poshmark (POSH) by Naver Corp. for $1.2 billion or $17.90 per share in cash.
  4. UnitedHealth Group Incorporated (UNH) completed the acquisition of Change Healthcare (CHNG).
  5. Prologis (PLD) completed the acquisition of Duke Realty Corporation (DRE).
  6. Patient Square Capital completed the acquisition of Hanger (HNGR).
  7. Pfizer (PFE) completes the acquisition of Biohaven Pharmaceutical Holding Company (BHVN).
  8. VMware (VMW) announced that the special meeting of stockholders will be on November 4, 2022.

Deals In The Works

  1. Engine Capital investor in Light & Wonder (LNW) (formerly known as Scientific Games) and its subsidiary Sciplay (SCPL) is urging the gaming companies to merge in an effort to improve value for their shareholders.

Insider Purchases

  1. Greg Abel, the Vice Chair of Berkshire Hathaway (BRK.A) and Warren Buffett’s successor,  purchased 168 class A shares at an average price of $406,730 for a total value of $68.33 million. He purchased these shares indirectly through a revocable trust.
  2. Jamie Welch, the CEO and CFO of midstream energy company Kinetik Holdings (KNTK), purchased 5,684 shares at an average price of $32.97 for a total value of $187,401.
  3. James Dondero, the President of diversified REIT Nexpoint Diversified Real Estate Trust (NXDT), purchased 10,000 shares at an average price of $12.60 for a total value of $126,000. He purchased these shares through an employee plan.
  4. Timothy Damadian, the CEO of MRI devices company Fonar (FONR) and the son of Dr. Raymond Damadian (the father of MRI) who passed away two months ago, purchased 4,700 shares at an average price of $13.87 for a total value of $65,205. The COO of the company also purchased 4,700 shares at an average price of $14.07.
  5. Mark Lammas, the President of office REIT Hudson Pacific Properties (HPP), purchased 5,000 shares at an average price of $11.11 for a total value of $55,500. The CFO and three different Directors also purchased shares in the last two weeks.

Spinoffs

  1. Pfizer (PFE) completed its acquisition of Biohaven Pharmaceutical Holding Company. Effective immediately prior to the closing of the acquisition, Biohaven completed the spin-off of Biohaven (BHVN), distributing Biohaven ’s shares to Biohaven’s shareholders.
  2. ABB (ABB) completes the spin-off of Accelleron.
  3. Ligand Pharmaceuticals (LGND) has set October 26, 2022 as the record date for the dividend of shares of common stock of OmniAb to be distributed to Ligand shareholders in order to effect the separation of Ligand and OmniAb into two independent, publicly traded companies.
  4. Xperi (XPER) completes its spin-off to become an independent public company. As previously announced, each stockholder of record of the company’s predecessor (now known as Adeia Inc.) (ADEA), as of close of business on Wednesday, September 21, 2022, received a distribution of four shares of Xperi Common Stock for every ten shares of common stock of Adeia.

SPACs

  1. Estrella Biopharma, a preclinical-stage biopharmaceutical company focusing on cancer therapeutics, and TradeUP Acquisition (UPTD) entered into a definitive business combination agreement.
  2. Complete Solaria and Freedom Acquisition I Corp. (FACT) announced a definitive agreement for a business combination.

Stock Buyback Announcements

  1. Urstadt Biddle Properties (UBA) authorizes a new stock buyback program for up to 2M shares, representing around 5% of its market cap at announcement.
  2. First Financial Northwest (FFNW) announces a new stock repurchase plan that represents around 5% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Maravai LifeSciences (MRVI) appointed William Martin, III as its CEO, succeeding co-founder Carl Hull, Hull to Serve as Executive Chairman of the Board of Directors.
  2. Rockwell Automation (ROK) named Robin Saitz as Vice President, Global Marketing and Chief Marketing Officer.
  3. Mirion Technologies (MIR), announced the appointment of Michael Rossi as the President of Mirion Medical.
  4. Kontoor Brands (KTB), announced the appointment of Ezio Garciamendez as Senior Vice President, Chief Supply Chain Officer, effective November 1, 2022.
  5. Riot Blockchain (RIOT), Colin M. Yee, appointed as the company’s CFO, effective as of September 26, 2022 and Ryan D. Werner,  appointed as the company’s Chief Accounting Officer.
  6. CACI International (CACI) appointed Jeffrey D. MacLauchlan as Executive Vice President, Chief Financial Officer and Treasurer of the company, effective November 1, 2022.
  7. Codexis (CDXS) announced the appointment of Kevin Norrett, as the company’s Chief Operating Officer, effective immediately.
  8. Utz Brands (UTZ)  appointed Howard A. Friedman as Chief Executive Officer of the company.
  9. Kura Sushi USA (KRUS) appointed Jeffrey J. Uttz as Chief Financial Officer of the company, effective as of October 3, 2022.
  10. Dollar Tree (DLTR) Jeffrey A. Davis commenced employment as Chief Financial Officer.
  11. Rocket Companies (RKT) appointed Brian Brown, the company’s current Chief Accounting Officer, as the company’s Chief Financial Officer and Treasurer, effective November 15, 2022.
  12. Calix (CALX) appointed Michael Weening, to the position of Chief Executive Officer
  13. Crinetics Pharmaceuticals (CRNX)  announced the appointment of Dana Pizzuti. as the company’s Chief Development Officer.
  14. Venus Concept (VERO) announced that Rajiv De Silva has been appointed Chief Executive Officer, effective October 2, 2022.

Departures

  1. Riot Blockchain (RIOT) Mr. Jeffrey G. McGonegal stepped down from his long-time position as the Chief Financial Officer, effective as of September 26, 2022.
  2. CACI International (CACI) announced that Thomas A. Mutryn will resign as Executive Vice President, Chief Financial Officer and Treasurer effective November 1, 2022.
  3. Carriage Services (CSV) announced that Carl Benjamin plans to resign from his position as Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) of the company effective January 2, 2023.
  4. Edmund DiSanto communicated his intention to retire from his role as American Tower Corporation’s (AMT) Executive Vice President, Chief Administrative Officer, General Counsel and Secretary, effective January 1, 2023.
  5. SouthState Corporation (SSB) announced that Greg A. Lapointe, the company’s Chief Banking Officer, will retire from the company, effective December 31, 2023.
  6. Rocket Companies (RKT)  announced that Angelo Vitale will transition from his role as General Counsel and Secretary of the company into an Of Counsel role, effective October 3, 2022. The Board appointed Tina V. John, the company’s current Deputy General Counsel and Assistant Secretary, as the company’s General Counsel and Secretary, effective October 3, 2022.
  7. Gelesis Holdings (GLS) announced that Abraham will cease to serve as General Counsel, Chief Compliance Officer and Corporate Secretary, effective October 1, 2022.
  8. Zendesk (ZEN) announced that Jeffrey Titterton will being resign from his position as Chief Operating Officer effective as of November 15, 2022.
  9. Venus Concept (VERO)  announced the separation of Domenic Serafino as Chief Executive Officer, effective October 2, 2022.

Disclaimer: I have a long position in Pfizer (PFE),. 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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