InsideArbitrage Event Driven Monitor – November 29, 2022

  • November 29, 2022

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

Merger Arbitrage

  1. Reuters reported that Senator Amy Klobuchar’s office has said in a statement that Kroger (KR) CEO Rodney McMullen and Albertsons’ (ACI) top executive, Vivek Sankaran, will face questions this week on plans for the two companies to merge.
  2. Thoma Bravo’s notification and report form with respect to its merger with ForgeRock (FORG) was withdrawn effective as of November 23, 2022, and it intends to refile on or about November 28, 2022.
  3. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), expired in connection with the previously announced proposed merger between Akouos (AKUS) and Eli Lilly and Company (LLY).

Deal in the Works

  1. INDUS Realty Trust (INDT), a U.S.-based industrial/logistics REIT, announced it received an unsolicited, non-binding proposal from Centerbridge Partners, L.P.  to acquire 100% of the outstanding shares of the company’s common stock that Centerbridge does not already own for cash consideration of $65.00 per share.

Insider Purchases

  1. Kelcy L. Warren, the Executive Chairman of oil & gas midstream company Energy Transfer LP (ET), purchased 1,300,000 shares at an average price of $12.39 totaling $16.11 million.
  2. Cathy G. Ackermann, a Director of regional bank SmartFinancial, Inc. (SMBK), purchased 10,000 shares at an average price of $28.94 totaling $289,450. These purchases were filed a few weeks late but we retained it because the purchase price is close to the current price.
  3. Ian Davis, a Director of IT services company Thoughtworks Holding, Inc. (TWKS), purchased 25,000 shares at an average price of $8.00 totaling $200,000.
  4. Prasad Gundumogula, the Chief Executive Officer of travel technology and services company Mondee Holdings, Inc. (MOND), purchased 22,000 shares at an average price of $8.47 totaling $186,280.
  5. Wes Cummins, the CEO; Chairman of datacenter operator Applied Digital, Inc. (APLD), purchased 80,000 shares at an average price of $2.14 totaling $171,400.
  6. Merrill A. McPeak, a Director of biotechnology company Iovance Biotherapeutics, Inc. (IOVA), purchased 10,000 shares at an average price of $6.18 totaling $61,800. Iain D. Dukes, another Director of the company, also purchased 10,000 shares at an average price of $6.10 totaling $61,000. Frederick G. Vogt, the Interim CEO & General Counsel of the company, purchased 1,000 shares at an average price of $5.98 totaling $5,980.
  7. Beat Kahli, a Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 10,000 shares at an average price of $10.99 totaling $109,900.
  8. Luis de la Aguilera, the President and CEO of regional bank USCB Financial Holdings, Inc. (USCB), purchased 7,400 shares at an average price of $13.50 totaling $99,878.
  9. Joseph E. Payne, the President and CEO of biotechnology company Arcturus Therapeutics Holdings Inc. (ARCT), purchased 5,000 shares at an average price of $16.51 totaling $82,550.
  10. Elizabeth A. Pagliarini, a Director of regional bank First Foundation Inc. (FFWM), purchased 5,471 shares at an average price of $13.71 totaling $74,983.
  11. Gerald L. Hogue, a Director of biotechnology company POINT Biopharma Global Inc. (PNT), purchased 3,660 shares at an average price of $6.82 totaling $24,943. Two other Directors of the company also purchased 3,600 and 3,700 shares each.
  12. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,623.16 totaling $55,086.
  13. Douglas J. Tucker, the SVP Corporate Counsel of regional bank Midland States Bancorp, Inc. (MSBI), purchased 2,000 shares at an average price of $25.45 totaling $50,900.
  14. Marc Haugen, a Director of semiconductor equipment & materials company Ichor Holdings, Inc. (ICHR), purchased 1,750 shares at an average price of $28.54 totaling $49,945.
  15. David K. Morgan, a Director of payment solutions company i3 Verticals, Inc. (IIIV), purchased 2,000 shares at an average price of $24.80 totaling $49,600.
  16. Marie Taylor Leibson, the EVP, Chief Credit Officer of regional bank Primis Financial Corp. (FRST), purchased 4,000 shares at an average price of $9.14 totaling $36,560.
  17. David D. Nelson, the CEO & President of regional bank West Bancorporation, Inc. (WTBA), purchased 1,348 shares at an average price of $23.15 totaling $31,206.

Spinoffs

  1. Enveric Biosciences (ENVB) announced the confidential submission of a Form S-1 draft registration statement with the U.S. Securities and Exchange Commission for the spin-off of its cannabinoid clinical development pipeline to a wholly-owned subsidiary, Akos Biosciences, by way of dividend to Enveric shareholders.

Stock Buyback Announcements

  1. Builders FirstSource, Inc. (BLDR) approved a $1 billion increase to the company’s existing stock repurchase plan for approximately $1.5 billion inclusive of the remaining outstanding authorization at the end of the third quarter of 2022. This represents around 11.2% of its market cap at announcement.
  2. Air Transport Services Group, Inc. (ATSG) has adopted a new $150 million common share repurchase authorization to replace its prior authorization. This represents around 8% of its market cap at announcement.
  3. Standard BioTools Inc. (LAB) has authorized the repurchase of up to $20 million of shares of its common stock through December 31, 2023. This represents around 11.2% of its market cap at announcement.

Update

  1. Philip Morris International Inc. (PM) has suspended its current three-year $ 7B share repurchase program which began in July 2021 to support deleveraging.

C-Suite Transitions

Appointment

  1. Faraday Future Intelligent Electric (FFIE) appoints Xuefeng (“XF”) Chen as Global Chief Executive Officer of the company, effective as of November 27, 2022.
  2. Dutch Bros (BROS) announced that Christine Barone will be appointed to serve as President of the Company effective February 6, 2023.
  3. EnLink Midstream (ENLC) appoints Benjamin D. Lamb as Executive Vice President and Chief Financial Officer and Walter Pinto as Chief Operating Officer.
  4. US Foods Holding Corp (USFD) appointed David Flitman as Chief Executive Officer of the company effective January 5, 2023.
  5. Vail Resorts (MTN) announced the appointment of Angela Korch as Chief Financial Officer, effective December 22, 2022.
  6. Diebold Nixdorf (DBD), announced that Elizabeth C. (Lisa) Radigan has been appointed as Chief People Officer.
  7. Unity (U) has named Anirma Gupta as Senior VP and General Counsel.
  8. Braskem S.A. (BAK) names Roberto Bischoff as Chief Executive Officer effective January 1, 2023, pending board approval.
  9. Hain Celestial Group (HAIN) appoints Wendy Davidson as President and Chief Executive Officer effective January 1, 2023.

Departures

  1. Faraday Future Intelligent Electric (FFIE) Board voted to remove Dr. Carsten Breitfeld as Global Chief Executive Officer.
  2. ATI Physical Therapy (ATIP) Ray Wahl resigns from the position of Chief Operating Officer.
  3. Acacia Research Corporation (ACTG) Lawrence Wesley Golby resigns from his position as the company’s Chief Investment Officer.
  4. Enfusion (ENFN) Stephen Dorton, Chief Financial Officer resigns effective January 6, 2023.
  5. CareTrust REIT (CTRE) Mark D. Lamb, resigns as Chief Investment Officer effective December 31, 2022.
  6. EnLink Midstream (ENLC) Pablo G. Mercado departed from his position as Executive Vice President and Chief Financial Officer and Benjamin D. Lamb steps down as Chief Operating Officer.
  7. US Foods Holding Corp (USFD) Interim Chief Executive Officer Andrew Iacobucci, steps down effective January 5, 2023.
  8. Diebold Nixdorf (DBD) Beth Patrick Chief People Officer resigns.
  9. Braskem S.A. (BAK) Roberto Simoes, Chief Executive Officer departs on January 1, 2023.
  10. Hain Celestial Group (HAIN) Mark Schiller President and Chief Executive Officer steps down effective January 1, 2023.

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.