InsideArbitrage Event Driven Monitor – November 10, 2022

  • November 10, 2022

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

Merger Arbitrage

  1. OceanFirst Financial (OCFC) and Partners Bancorp (PTRS) jointly announced that they have agreed to terminate the merger agreement.
  2. A form-4 filing on Tuesday indicated that Zendesk (ZEN) accelerated restricted stock units (RSUs) originally scheduled to vest on November 15 to November 4 in order to facilitate the settlement of taxes due upon vesting of such RSUs, “in advance of the closing” of its sale to Permira and Hellman & Friedman.
  3. The European Commission has opened an in-depth investigation to assess the proposed acquisition of Activision Blizzard (ATVI) by Microsoft (MSFT) under the EU Merger Regulation.
  4. Turquoise Hill (TRQ) announced that it has postponed the shareholder meeting on the Rio Tinto deal indefinitely.

Insider Purchases

  1. Matthew Jacobson, a Director of cloud security company Datadog, Inc. (DDOG), purchased 719,894 shares at an average price of $69.45 totaling $50 million. These purchases were made indirectly through various ICONIQ funds.
  2. Jason Ronald Krantz, a Director of health information services company Definitive Healthcare Corp. (DH), purchased 450,000 shares at an average price of $11.54 totaling $5.19 million.
  3. Dominic Francis Silvester, the Chief Executive Officer of specialty insurance company Enstar Group LTD (ESGR), purchased 26,000 shares at an average price of $190.08 totaling $4.94 million.
  4. Martin J. Schroeter, the Chief Executive Officer of information technology services company Kyndryl Holdings, Inc. (KD), purchased 109,000 shares at an average price of $9.68 totaling $1.06 million. Elly Keinan, the Group President of the company, purchased 23,800 shares at an average price of $9.19 totaling $218,812. David B. Wyshner, the CFO of the company, purchased 20,000 shares at an average price of $9.13 totaling $182,504. Kyndryl was spun out of IBM in November 2021 and is down nearly 69% since the spinoff.
  5. Lip Bu Tan, a Director of Intel Corp. (INTC), purchased 48,146 shares at an average price of $27.98 totaling $1.35 million.
  6. Carl L. Gordon, a Director of oncology focused biotech company Theseus Pharmaceuticals, Inc. (THRX), purchased 192,000 shares at an average price of $5.21 totaling $1 million.
  7. Jeffrey Eckel, the President and CEO of climate solutions investor Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI), purchased 10,000 shares at an average price of $29.26 totaling $292,600. Nathaniel Rose, the EVP & CIO of the company, purchased 10,000 shares at an average price of $28.94 totaling $289,390. Three other insiders also purchased 2,500, 1,000 and 1,000 shares respectively.
  8. Jay Farner, the Chief Executive Officer of mortgage originator Rocket Companies, Inc. (RKT), purchased 92,700 shares at an average price of $6.44 totaling $596,885. Matthew Rizik, a  Director of the company, purchased 10,000 shares at an average price of $6.43 totaling $64,315.
  9. Joseph P. Adams, the CEO and Chairman of transportation equipment company Fortress Transportation & Infrastructure Investors LLC (FTAI), purchased 25,000 shares at an average price of $18.00 totaling $450,000. This purchase comes right before the company renames itself as FTAI Aviation and converts from a LLC into a C Corporation.
  10. Manuel Perez de la Mesa, a Director of water management company Advanced Drainage Systems, Inc. (WMS), purchased 5,000 shares at an average price of $81.90 totaling $409,500.
  11. Matthew W. Foehr, the President & CEO of biotech company OmniAb, Inc. (OABI), purchased 100,000 shares at an average price of $2.76 totaling $276,160.
  12. Beat Kahli, a Director of automotive and consumer Electronics company VOXX International Corp (VOXX), purchased 25,000 shares at an average price of $10.11 totaling $252,750.
  13. Steve Lumpkin, a Director of restaurant operator Red Robin Gourmet Burgers, Inc. (RRGB), purchased 20,000 shares at an average price of $7.02 totaling $140,398. Thomas G. Conforti, a Director of the company, purchased 11,231 shares at an average price of $6.98 totaling $78,392.
  14. Stuart Rothstein, the President & CEO of mortgage REIT Apollo Commercial Real Estate Finance, Inc. (ARI), purchased 15,000 shares at an average price of $11.18 totaling $167,671.
  15. Michael Robert Martin, the Chief Business Officer of biotech company Aurinia Pharmaceuticals Inc. (AUPH), purchased 30,000 shares at an average price of $5.16 totaling $154,800.
  16. Michael Thawley, a Director of for-profit education company Strategic Education, Inc. (STRA), purchased 1,939 shares at an average price of $77.34 totaling $149,958.
  17. James M. Watkins, the CFO & Secretary of footwear retailer Boot Barn Holdings, Inc. (BOOT), purchased 2,500 shares at an average price of $52.33 totaling $130,837.
  18. Jonathan Segal, the Executive Chairman of restaurant operator ONE Group Hospitality, Inc. (STKS), purchased 20,000 shares at an average price of $5.33 totaling $106,600.
  19. Maria P. Tedesco, the EVP of regional bank Atlantic Union Bankshares Corp (AUB), purchased 2,904 shares at an average price of $34.37 totaling $99,804.
  20. Martha Helena Bejar, a Director of telecom services company Lumen Technologies, Inc. (LUMN), purchased 12,500 shares at an average price of $6.36 totaling $79,500.
  21. Wes Cummins, the CEO and Chairman of datacenter company Applied Blockchain, Inc. (APLD), purchased 30,000 shares at an average price of $2.14 totaling $64,200.
  22. John V. Balen, a Director of digital advertising company Cardlytics, Inc. (CDLX), purchased 15,000 shares at an average price of $4.04 totaling $60,547.
  23. Boris Elisman, the Chairman of the Board and CEO of business and consumer products company ACCO Brands Corp (ACCO), purchased 10,000 shares at an average price of $5.17 totaling $51,700.
  24. Mark A. Green, a Director of insurance company United Fire Group, Inc. (UFCS), purchased 1,800 shares at an average price of $28.31 totaling $50,964.
  25. Sarah E. Hlavinka, the EVP, Chief Legal Officer & Secretary of office products retailer ODP Corp (ODP), purchased 1,200 shares at an average price of $41.58 totaling $49,896.
  26. Carolyn J. Woodruff, a Director of regional bank Blue Ridge Bankshares, Inc. (BRBS), purchased 2,304 shares at an average price of $12.99 totaling $29,929. Judy Carol Gavant, the EVP & Chief Financial Officer of the company, purchased 1,000 shares at an average price of $13.10 totaling $13,103. Elizabeth Hinton Crowther, a Director of the bank, purchased 400 shares at an average price of $13.37 totaling $5,348.
  27. Allan R. Landon, a Director of personal lending company LendingClub Corp (LC), purchased 5,000 shares at an average price of $9.50 totaling $47,500.
  28. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,717.76 totaling $38,049.
  29. Daniel L. Olivier, the Chief Financial Officer of trucking company Yellow Corp (YELL), purchased 10,000 shares at an average price of $2.94 totaling $29,440.

SPACs

  1. Plutonian Acquisition Corp. (PLTNUpriced its initial public offering of 5,000,000 units at $10.00 per unit.
  2. Athlon Acquisition Corp. (SWET) announced that, due to its anticipated inability to consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, the company intends to dissolve and liquidate.

Stock Buyback Announcements

  1. Phillips 66 (PSX) increased share repurchase authorization by $5 billion, representing around 10% of its market cap at announcement.
  2. Automatic Data Processing, Inc. (ADP) authorized the purchase of $5 billion of its common stock, representing 5% of its market cap at announcement.
  3. Capri Holdings Limited (CPRI) approved a new share repurchase program of up to $1 billion of its outstanding ordinary shares. This represents around 15.4% of its market cap at announcement.
  4. Target Hospitality Corp. (TH) authorized up to $100 million stock repurchase plan, representing around 9.4% of its market cap at announcement.
  5. Tuya Inc. (TUYA) authorized a $50M share repurchase program representing around 10% of its market cap at announcement.
  6. Magna International Inc. (MGA) received TSX approval for the purchase of up to 28,445,000 Magna shares, representing approximately 10% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Scholar Rock Holding Corporation (SRRK) appointed Dr. Jing Marantz as Chief Medical Officer effective as of November 9, 2022.
  2. Green Dot Corporation (GDOT) announced the appointment of Jess Unruh as its Chief Financial Officer and Teresa Watkins as its Chief Operations Officer.
  3. Crescent Capital BDC (CCAP), appointed Erik Barrios as the company’s Chief Compliance Officer.
  4. Accel Entertainment (ACEL) announced that Christie Kozlik, has been appointed as Chief Accounting Officer.
  5. Bright Health Group (BHG) announced the appointment of Jeff Cook, Chief Executive Officer, NeueHealth, as Chief Operating Officer.
  6. Excelerate Energy (EE) announced  David Liner, Vice President of Operations and Maintenance, will become Executive Vice President and Chief Operating Officer of the company effective January 1, 2023.
  7. Mirati Therapeutics (MRTX), announced the appointment of Alan Sandler, to the position of Chief Medical Officer.

Departures

  1. Rigetti Computing (RGTI) Chad Rigetti, Founder, President, and Chief Executive Officer intends to resign from his position effective December 15, 2022.
  2. CEVA (CEVA)  Gideon Wertheizer has announced his intention to retire from his position as the company’s Chief Executive Officer.
  3. Bright Health Group (BHG) announced that Michael Carson, the Chief Executive Officer, is stepping down from his role effective December 2, 2022.
  4. Excelerate Energy (EE) announced Calvin A. Bancroft, Executive Vice President, and Chief Operating Officer, will resign from his positions.
  5. Hasbro (HAS), announced that Executive Vice President and Chief Financial Officer Deborah Thomas has informed the company of her intent to retire.

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