InsideArbitrage Event Driven Monitor – November 4, 2022

  • November 4, 2022

Quick updates on the event-driven strategies we follow on InsideArbitrage. We are seeing a significant uptick in both insider buying and stock buyback announcements. I look forward to aggregating the data during the next few weekends to see if there are any signals in the aggregate data.

Merger Arbitrage

  1. Shareholders of Hill International (HIL) approved the company’s merger with Global Infrastructure Solutions at a special meeting of shareholders.
  2. Nordson Corporation completed the acquisition of CyberOptics Corporation (CYBE).
  3. Axar Capital Management completed the acquisition of StoneMor (STON).
  4. According to Bloomberg, Justice Department officials are scrutinizing whether Standard General’s proposed purchase of broadcaster Tegna (TGNA) could lead to higher cable prices.
  5. According to Reuters, a state court in Washington has temporarily blocked Albertsons Companies (ACI) from paying a $4 billion dividend to shareholders before the grocery chain closes its proposed deal with rival Kroger (KR).

Deal in the Works

  1. The top shareholder in Nano Dimension Ltd. (NNDM) has made a proposal to acquire the rest of the 3D printing company it doesn’t already own in a transaction that would value the company at roughly $995 million.
  2. American Axle & Manufacturing Holdings (AXL) a maker of drivetrain components, is attracting preliminary interest from suitors including Melrose Industries people familiar with the matter said.
  3. Veris Residential (VRE) unanimously rejects unsolicited proposals from Kushner Companies, believes this proposal grossly undervalues the company

Insider Purchases

  1. Eric Louis Zinterhofer, the Director of cable company Charter Communications, Inc. (CHTR), purchased 27,202 shares at an average price of $374.04 totaling $10.17 million.
  2. Joseph M. Hogan, the President and CEO of dental devices company Align Technology, Inc. (ALGN), purchased 10,600 shares at an average price of $188.58 totaling $2 million. Anne  Myong and Warren S. Thaler, Directors of the company, purchased 1,500 shares and 1,050 shares respectively.
  3. Thomas J. Hook, the President and CEO of specialty industrial machinery company Barnes Group, Inc. (B), purchased 27,500 shares at an average price of $36.27 totaling $997,295.
  4. Brian Choi, a Director of regional bank OP Bancorp (OPBK), purchased 34,656 shares at an average price of $11.23 totaling $389,167.
  5. Matthew L. Trerotola, a Director of drug dispensing and packaging technologies company AptarGroup, Inc. (ATR), purchased 3,170 shares at an average price of $94.48 totaling $299,503.
  6. Beat Kahli, the Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 25,000 shares at an average price of $9.79 totaling $244,750.
  7. Duy-Loan Le, a Director of semiconductors company Wolfspeed, Inc. (WOLF), purchased 3,000 shares at an average price of $74.97 totaling $224,900.
  8. James R. Groch, a Director of financial technology service provider WEX Inc. (WEX), purchased 1,400 shares at an average price of $151.25 totaling $211,750.
  9. Sven Ante Lundberg, the President, CEO & PFO of biotech company Merus N.V. (MRUS), purchased 14,706 shares at an average price of $14.38 totaling $211,431.
  10. Barry Finn, a Director of regional bank Old Second Bancorp, Inc. (OSBC), purchased 10,000 shares at an average price of $16.44 totaling $164,400.
  11. Thomas M. Prame, the President of regional bank Horizon Bancorp, Inc. (HBNC), purchased 6,750 shares at an average price of $15.09 totaling $101,858. Craig M. Dwight, the Chief Executive Officer of the company, also purchased 2,000 shares at an average price of $15.08 totaling $30,160.
  12. James Craigie, the Director of household & personal products company Newell Brands, Inc. (NWL), purchased 10,000 shares at an average price of $13.36 totaling $133,600.
  13. Mark Miller, the President and COO of insurance company Goosehead Insurance, Inc. (GSHD), purchased 2,000 shares at an average price of $39.25 totaling $78,500.
  14. Greg M. Graves, a Director of regional bank UMB Financial Corp. (UMBF), purchased 281 shares at an average price of $83.12 totaling $23,357. Tamara Peterman, a Director of the company, also purchased 213 shares at an average price of $83.12 totaling $17,705.
  15. James Slavet, the Director of Real Estate Services company Redfin Corp (RDFN), purchased 6,667 shares at an average price of $4.99 totaling $33,295.
  16. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,334.18 totaling $32,679.
  17. Daniel J. Crowley, a Director of communication equipment company Knowles Corp (KN), purchased 2,000 shares at an average price of $13.97 totaling $27,940.

SPACs

  1. Gores Technology Partners (GTPA) filed a preliminary proxy statement to seek stockholder approval to Liquidate in 2022.
  2. Gores Technology Partners II (GTPB) filed a preliminary proxy statement to seek stockholder approval to Liquidate in 2022.
  3. Gores Holdings VII (GSEV) filed a preliminary proxy statement to seek stockholder approval to Liquidate in 2022.

Stock Buyback Announcements

  1. Humana Inc. (HUM) entered into separate accelerated stock repurchase agreements with each of Goldman Sachs & Co. LLC and Mizuho Markets Americas LLC to repurchase an aggregate of $1 billion of Humana’s common stock as part of the $3 billion share repurchase program that Humana announced on February 18, 2021. This represents around 1.4% of its market cap at announcement.
  2. ConocoPhillips (COP) approved a $20 billion increase in the existing share repurchase program to $45 billion. This represents around 12.5% of its market cap at announcement.
  3. ING Groep N.V. (ING) announced the start of a share buyback programme under which it plans to repurchase ordinary shares of ING Groep N.V., for a maximum total amount of €1.5 billion ($1.46B). This represents around 4% of its market cap at announcement.
  4.  Monster Beverage Corporation (MNST) authorized a new share repurchase program for the repurchase of up to $500 million of the Company’s outstanding common stock. This represents around 1% of its market cap at announcement.
  5. Yelp Inc. (YELP) authorized a $250 million increase to stock repurchase program, representing nearly 10% of its market cap at announcement.
  6. California Resources Corporation (CRC) authorized a raise in the share repurchase program by $200 million and extended the term of the program through December 31, 2023. This represents around 5.6% of its market cap at announcement.
  7.  Universal Corporation (UVV) approved a $100 million share repurchase program. This represents 8.2% of its market cap at announcement.
  8. WideOpenWest, Inc. (WOW) authorized a $50 million share repurchase program to be completed over 18-month period.This represents 5% of its market cap at announcement.
  9. Tecnoglass Inc. (TGLS), announced that the Board of Directors authorized Tecnoglass to buy back up to $50 million of its common shares, representing around 4.3% of its market cap at announcement.
  10. Emerald Holding, Inc. (EEX)  authorized a raise in the share repurchase program by $20 million, representing around 8.3% of its market cap at announcement.
  11. Distribution Solutions Group, Inc. (DSGR) authorized an increase of the existing share buyback program from $7.5 million to $12.5 million. This represents less than 1% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Service Corporation International (SCI) Lori Spilde, will assume the role of Senior Vice President, General Counsel, and Secretary effective April 1, 2023, as a part of the Company’s succession planning process.
  2. Valmont Industries (VMI) appointed Eugene Padgett as Chief Accounting Officer
  3. Tyra Biosciences (TYRA) appointed Alan Fuhrman as Chief Financial Officer, effective January 1, 2023.
  4. ESS Tech (GWH) announced the appointment of Anthony Rabb as Chief Financial Officer of the company, effective November 4, 2022
  5. Nikola Corporation (NKLA) appointed Michael Lohscheller as Chief Executive Officer
  6. BK Technologies Corporation (BKTI) appointed Scott Malmanger, as the Chief Financial Officer
  7. The Lovesac Company (LOVE) announced that John Legg has been appointed as Chief Supply Chain Officer
  8. ATI Inc. (ATI) has named Jimmy Williams, Jr. as Senior Vice President and Chief Technology Officer.

Departures

  1. Service Corporation International (SCI) announced that Gregory T. Sangalis, Senior Vice President, General Counsel and Secretary, informed the Company of his intent to retire effective March 31, 2023.
  2. Valmont Industries (VMI) Tim P. Francis steps down as Chief Accounting Officer
  3. Tyra Biosciences (TYRA) Esther van den Boom, informed the company of her intent to resign as the Chief Financial Officer, effective December 31, 2022.
  4. ESS Tech (GWH) Amir Moftakhar, tendered his resignation as Chief Financial Officer to be effective as of November 4, 2022.
  5. Nikola Corporation (NKLA) announced Mark A. Russell retires as Chief Executive Officer
  6. CapStar Financial Holdings (CSTR) announced that John A. Davis, Chief Operations and Technology Officer resigned

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.