InsideArbitrage Event Driven Monitor – November 7, 2022

  • November 7, 2022

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

Merger Arbitrage

  1. Yamana Gold (AUY) confirmed that it has received an unsolicited binding proposal from Agnico Eagle Mines Limited (AEM) and Pan American Silver Corp. (PAAS). Under the New Offer, shareholders of the company would receive $1.0406 in cash, 0.0376 of an Agnico Share, and 0.1598 of a Pan American Share for each common share held. The Board of Directors of the company has has notified Gold Fields (GFI) that the Board has determined that the new offer constitutes a Yamana Superior Proposal and that the five business day matching period has commenced.
  2. Shareholders of VMware (VMW) approved the company’s merger with Broadcom (AVGO) at a special meeting of shareholders.
  3. Albertsons Companies (ACI) announced that the Attorney General of the State of Washington has been granted a temporary restraining order, that restrains the company from paying the previously announced $6.85 per common share special dividend, originally scheduled to be paid on November 7, 2022. Albertsons intends to seek to overturn the restraint as quickly as possible because the temporary order was based on the incorrect assertion that payment of the special dividend would impair its ability to compete while its proposed merger with The Kroger Co. (KR) is under antitrust review. A hearing on the State of Washington’s request for a preliminary injunction is scheduled for November 10, 2022.
  4. STORE Capital Corporation (STOR) announced that the special meeting of stockholders will be on December 9, 2022.

Deal in the Works

  1. Yamana Gold (AUY) confirmed that it has received an unsolicited binding proposal from Agnico Eagle Mines Limited (AEM) and Pan American Silver Corp. (PAAS). Under the New Offer, shareholders of the company would receive $1.0406 in cash, 0.0376 of an Agnico Share, and 0.1598 of a Pan American Share for each common share held.
  2. American Axle (AXL) denies sale talks

Insider Purchases

  1. Joseph J. Deangelo, a Director of datacenter and technology infrastructure products company Vertiv Holdings Co (VRT), purchased 71,600 shares at an average price of $13.99 totaling $1 million.
  2. Ernest S. Rady, the Chairman & CEO of diversified REIT American Assets Trust, Inc. (AAT), purchased 20,000 shares at an average price of $28.35 totaling $567,000.
  3. Jay Farner, the Chief Executive Officer of mortgage originator Rocket Companies, Inc. (RKT), purchased 62,800 shares at an average price of $6.36 totaling $399,704. Matthew Rizik, a Director of the company, purchased 6,800 shares at an average price of $6.37 totaling $43,316.
  4. Beat Kahli, a Director of automotive and consumer electronics company VOXX International Corp (VOXX), purchased 25,000 shares at an average price of $9.85 totaling $246,250.
  5. Allan R. Landon, a Director of lending platform LendingClub Corp (LC), purchased 20,000 shares at an average price of $9.74 totaling $194,878.
  6. Zubaid Ahmad, a Director of packaging products company Sealed Air, Corp. (SEE), purchased 1,200 shares at an average price of $42.12 totaling $50,544. Sergio A. Pupkin, the Senior Vice President of the company, purchased 1,000 shares at an average price of $44.33 totaling $44,330.
  7. Mark D. Morelli, the President and CEO of industrial technology company Vontier Corp (VNT), purchased 2,000 shares at an average price of $17.42 totaling $34,840. Anshooman Aga, the SVP and Chief Financial Officer of the company, purchased 1,500 shares at an average price of $17.51 totaling $26,263. Kathryn K. Rowen, the SVP, Chief Legal & Administrative Officer of Vontier, purchased 1,500 shares at an average price of $17.44 totaling $26,160.
  8. Richard W. Baker, a Director of regional bank Guaranty Bancshares, Inc. (GNTY), purchased 1,897 shares at an average price of $34.50 totaling $65,447.
  9. Abteen Vaziri, a Director of hotel REIT Braemar Hotels & Resorts Inc. (BHR), purchased 10,000 shares at an average price of $3.88 totaling $38,800.
  10. Murray Stahl, a Director of Texas landowner company Texas Pacific Land Corp (TPL), purchased 14 shares at an average price of $2,436.49 totaling $34,111.

SPACs

  1. The Music Acquisition Corporation (TMAC) will be holding a virtual special meeting of stockholders on November 30, 2022 to obtain stockholder approval to liquidate trust account before year-end.

Stock Buyback Announcements

  1. Select Medical Holdings Corporation (SEM) has authorized to repurchase up to $1 billion shares of its common stock. This represents around 33% of its market cap at announcement.
  2. Adient plc (ADNT) has approved a $600M share repurchase program, representing around 19% of its market cap at announcement.
  3. Apartment Income REIT Corp.(AIRC) has authorized the repurchase of an additional $213 million of shares, representing around 4% of its market cap at announcement.
  4. Perimeter Solutions, SA (PRM) has approved a new $100 million share repurchase authorization, representing around 9% of its market cap at announcement.
  5. Orion Engineered Carbons S.A.(OEC) has approved a $50M share repurchase program, representing around 5.4% of its market cap at announcement.
  6. B. Riley Financial, Inc. (RILY) has approved a new annual share repurchase plan of up to $50 million, representing around 4.6% of its market cap at announcement.
  7. Lexington Realty Trust (LXP) has increased repurchase authorization by 10 million common shares, representing around 3.6% of its market cap at announcement.
  8. Autohome Inc. (ATHM) authorized an extension of the term of the share repurchase program worth $200 million for another twelve months to November 17, 2023.

C-Suite Transitions

Appointments

  1. Coterra Energy (CTRA) appointed Thomas E. Jorden, its Chief Executive Officer and President and a director, as Chair of the Board effective January 1, 2023
  2. FedNat Holding Company (FNHC) appointed Richard B. Gaudet to serve as interim Chief Financial Officer effective November 18, 2022.
  3. NuZee (NUZE) approved the appointment of Shana Bowman as the company’s Interim Chief Financial Officer
  4. Tuesday Morning Corporation (TUEM) Andrew T. Berger was appointed as Chief Executive Officer
  5. Investar Holding Corporation (ISTR) designated John J. D’Angelo as the interim Chief Financial Officer
  6. Dragonfly Energy Holdings Corp. (DFLI), Nicole Harvey has been promoted to Chief Legal Officer, Wade Seaburg has been promoted to Chief Revenue Officer and Tyler Bourns has been promoted to Chief Marketing Officer
  7. Jabil Inc. (JBL) announced Kenny Wilson as the company’s next Chief Executive Officer effective May 1, 2023.
  8. Dominion Energy (D) announced the promotion of Steven D. Ridge to senior vice president and Chief Financial Officer
  9. Aurora Innovation (AUR) announced the appointment of Nolan Shenai as General Counsel.

Departures

  1. FedNat Holding Company (FNHC) announces the resignation of J. Gordon Jennings III, the company’s interim Chief Financial Officer.
  2. NuZee (NUZE) Jose Ramirez notified his resignation as the company’s Chief Sales Officer and Chief Supply Chain Officer, effective as of December 2, 2022, and Patrick Shearer notified his resignation as the Chief Financial Officer, effective on January 4, 2023
  3. Tuesday Morning Corporation (TUEM) Fred Hand, Chief Executive Officer, Marc Katz Chief Operating Officer, and Interim Chief Financial Officer and Paul Metcalf, Principal and Chief Merchant have decided to retire
  4. Investar Holding Corporation (ISTR) Christopher L. Hufft, Executive Vice President, and Chief Financial Officer, notified the company of his intent to separate from all positions effective November 4, 2022
  5. Dominion Energy (D)  James R. Chapman Chief Financial Officer departs
  6. Auddia (AUUD) announced the departure of its Chief Financial Officer, Brian Hoff.

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.