InsideArbitrage Event Driven Monitor – November 3, 2022

  • November 3, 2022

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

Merger Arbitrage

  1. South Jersey Industries (SJI) announced that its transaction with Infrastructure Investments Fund was unanimously approved by the Federal Energy Regulatory Commission, the Federal Communications Commission and has cleared the waiting period under Hart-Scott-Rodino. The transaction remains subject to regulatory approval by the New Jersey Board of Public Utilities.
  2. Turquoise Hill Resources (TRQ) acknowledged the announcement by Rio Tinto International Holdings Limited (RIO) of agreements entered into between Rio Tinto, Rio Tinto and certain shareholders of the company related to Pentwater Capital Management LP and SailingStone Capital Partners LLC holding in aggregate 32,617,578 common shares of the company.
  3. Partners Bancorp (PTRS) announced that the special meeting of stockholders will be on December 14, 2022.

Deal in the Works

  1. According to Bloomberg, Garrett Motion (GTX), a maker of turbochargers and other automotive equipment, is exploring strategic options including a sale.

Insider Purchases

  1. Ernest S. Rady, the Chairman & CEO of diversified REIT American Assets Trust, Inc. (AAT), purchased 50,000 shares at an average price of $27.60 totaling $1.38 million. I wrote about Mr. Rady’s buying spree in August here.
  2. Jay Farner, the Chief Executive Officer of mortgage originator Rocket Companies, Inc. (RKT), purchased 87,100 shares at an average price of $6.87 totaling $598,327. Matthew Rizik, a Director of the company also purchased 9,500 shares at an average price of $6.87 totaling $65,256.
  3. Mark Miller, the President and COO of insurance company Goosehead Insurance, Inc. (GSHD), purchased 8,000 shares at an average price of $40.01 totaling $320,092.
  4. Mark J. Alles, a Director of biotech company Biomarin Pharmaceutical, Inc. (BMRN), purchased 3,625 shares at an average price of $86.75 totaling $314,469.
  5. John C. Asbury, the President and CEO of regional bank Atlantic Union Bankshares Corp (AUB), purchased 7,235 shares at an average price of $34.48 totaling $249,428.
  6. Pat Gelsinger, the CEO of Intel (INTC), purchased 8,830 shares at an average price of $28.16 totaling $248,647.
  7. Beat Kahli, a Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 23,909 shares at an average price of $9.63 totaling $230,244.
  8. Robert Michael Gorman, the EVP of regional bank Atlantic Union Bankshares Corp (AUB), purchased 3,200 shares at an average price of $34.51 totaling $110,440.
  9. Brian K. Plum, the CEO & President of regional bank Blue Ridge Bankshares, Inc. (BRBS), purchased 4,000 shares at an average price of $12.82 totaling $51,280.
  10. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,315.28 totaling $32,414.

SPACs

  1. African Agriculture and 10X Capital Venture Acquisition Corp. II (VCXA) announced the execution of a definitive Business Combination Agreement.
  2. Flame Acquisition Corp. (FLME) announced an agreement to enter into a business combination with Sable Offshore Corp.
  3. Peak Bio Co., Ltd. (PKBO) announced the completion of its business combination with Ignyte Acquisition Corp.
  4. Iron Horse Acquisitions Corp. (IRON) filed its S-1 yesterday afternoon for a $100 million IPO as the first SPAC to file for an IPO in November thus far.

Stock Buyback Announcements

  1. The ODP Corporation (ODP) authorizes a new $1 billion share buyback plan through 2025 replacing the prior $600 million share repurchase authorization. This represents around 52% of its market cap at announcement.
  2. Qorvo, Inc. (QRVO) has approved a $2 billion share repurchase authorization representing around 23% of its market cap at announcement.
  3. CF Industries Holdings, Inc. (CF) authorized a $3 billion share repurchase program through 2025. This represents around 15% of its market cap at announcement.
  4. Service Corporation International (SCI) has increased the authorized level of repurchases of its common stock by approximately $350 million bringing the total amount under authorization to $600 million. This represents around 3.3% of its market cap at announcement.
  5. MYR Group Inc. (MYRG) announced its new share repurchase program that authorizes the company to repurchase up to $75 million of its outstanding shares of common stock representing about 5% of its marktet cap at announcement.
  6. Power Integrations, Inc. (POWI) has authorized the use of $100 million for the repurchase of the company’s common stock representing around 2.6% of its market cap at announcement.
  7. Noble Corporation plc (NE) has initiated shareholder return program with share repurchase authorization of up to $400 million representing around 9% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Bath & Body Works, Inc. (BBWI) announced the appointment of Gina Boswell as Chief Executive Officer effective as of December 1, 2022.
  2. Magnolia Oil & Gas Corporation (MGY) approved the appointment of Brian M. Corales, as Senior Vice President and Chief Financial Officer.
  3.  American Electric Power Company (AEP), announced that Ann P. Kelly to serve as its Executive Vice President and Chief Financial Officer.
  4. Freshpet (FRPT) announced the appointment of  Todd Cunfer to serve as Chief Financial Officer
  5. Tupperware Brands Corporation (TUP) Hector Lezama, President, Commercial Business Expansion, has been appointed to the position of Chief Commercial Officer
  6. Dynatrace (DT) announced the appointment of Jim Benson as Chief Financial Officer, effective November 15, 2022.
  7. ONE Gas, Inc. (OGS) elected Brian F. Brumfield to serve as the company’s Vice President, Chief Accounting Officer, and Controller.
  8. Skillz Inc. (SKLZ) approved a change in the position of Casey Chafkin from Chief Revenue Officer to Chief Strategy Officer

Departures

  1. System1 (SST) Paul Filsinger, President, notified the company that he is resigning from his position effective as of November 30, 2022.
  2. CURO Group Holdings Corp. (CURO) Roger Dean announced he will retire as the company’s Chief Financial Officer effective November 4, 2022
  3. Coinbase Global (COIN) Surojit Chatterjee, the company’s Chief Product Officer, mutually agreed to step down as Chief Product Officer
  4. Exelon Corporation (EXC) announced that Chief Executive Officer, Christopher Crane will retire from his position, effective December 30, 2022, due to health reasons
  5. Roku, Inc. (ROKU) Steve Louden, Chief Financial Officer plans to leave the company.
  6. KAR Auction Services (KAR) Eric M. Loughmiller, the company’s Executive Vice President and Chief Financial Officer, notified the company of his intent to retire n January 2023.
  7. American Electric Power Company (AEP) announced that, in connection with the company’s chief executive officer succession plan, Julia A. Sloat will resign as Chief Financial Officer of the company effective November 29, 2022. will continue to serve as President and Chief Executive Officer
  8. Freshpet (FRPT) Richard Kassar will step down from his position as Interim Chief Financial Officer
  9. Dynatrace (DT) Burns will resign as Chief Financial Officer and Principal Financial Officer effective November 15, 2022
  10. Procore Technologies (PCOR) Dennis Lyandres resigned from his position as Chief Revenue Officer

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.