InsideArbitrage Event Driven Monitor – December 12, 2022

  • December 12, 2022

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

Merger Arbitrage

  1. STORE Capital Corporation (STOR) announced that its stockholders approved the acquisition of the company by GIC and Oak Street. The transaction is expected to close in the first quarter of 2023.
  2. Oyster Point Pharma (OYST) announced that the required waiting period applicable under the HSR Act has expired with respect to its transaction with  Viatris (VTRS).
  3. Shareholders of Turquoise Hill Resources (TRQ) approved the company’s merger with Rio Tinto (RIO) at a special meeting of shareholders.
  4. Shift Technologies (SFT) closed its merger with CarLotz (LOTZ).
  5. Albertsons Companies (ACI) said that Washington State Court had denied a request of preliminary injunction by the state’s Attorney General to prevent the company from paying $4 billion to shareholders in a special dividend.
  6. The Wall Street Journal reported that Microsoft (MSFT) had been working for close to a year to calm regulators’ concerns about its acquisition of Activision Blizzard (ATVI), but the Federal Trade Commission’s suit to block the deal raised doubts about the company’s pledge not to shut out rivals.
  7. According to Reuters, Broadcom (AVGO) is set to face a setback in its bid for VMware (VMW) with EU antitrust regulators poised to open a full-scale investigation into the deal.

Deals in the Works

  1. Amgen Inc. (AMGN) is in advanced talks to buy drug company Horizon Therapeutics PLC, (HZNP) according to people familiar with the matter.
  2. Sanofi (SNY) announces it is no longer in discussions with Horizon and it does not intend to make an offer for Horizon (HZNP).
  3. Thoma Bravo LLC is in advanced talks to acquire Coupa Software (COUP) after outbidding Vista Equity Partners, according to people familiar with the matter.

Insider Purchases

  1. Edward Shoen, the President of U-Haul’s parent company Amerco (UHAL), purchased 248,300 shares at an average price of $64.97 totaling $16.13 million. These shares were purchased indirectly by Clarendon Strategies, LLC.
  2. Christopher Shackelton, a Director of RV dealership Lazydays Holdings, Inc. (LAZY), purchased 31,514 shares at an average price of $13.49 totaling $425,124. These shares were acquired indirectly through Coliseum Capital Management.
  3. Jay Farner, the Chief Executive Officer of mortgage originator Rocket Companies, Inc. (RKT), purchased 47,200 shares at an average price of $8.46 totaling $399,312. Matthew Rizik, a Director of the company, also purchased 5,200 shares at an average price of $8.46 totaling $43,992.
  4. Jonny Ginns, a Director of specialty chemicals company Ecovyst Inc. (ECVT), purchased 40,402 shares at an average price of $9.09 totaling $367,157.
  5. Albert P. Behler, the Chairman, CEO and President of office REIT Paramount Group, Inc. (PGRE), purchased 50,000 shares at an average price of $5.76 totaling $287,780. Thomas Armbrust, another Director of the company, also purchased 20,000 shares at an average price of $5.71 totaling $114,180.
  6. Robert W. Stallings, a Director of regional banks Texas Capital Bancshares (TCBI), purchased 5,000 shares at an average price of $56.79 totaling $283,950.
  7. Joe Walsh, the Chairman and CEO of marketing and software services company Thryv Holdings, Inc. (THRY), purchased 10,000 shares at an average price of $17.65 totaling $176,500.
  8. Ock Hee Kim, a Director of commercial bank OP Bancorp (OPBK), purchased 14,117 shares at an average price of $11.86 totaling $167,383.
  9. Robert Carey, a Director of medical devices company Beyond Air, Inc. (XAIR), purchased 20,000 shares at an average price of $5.75 totaling $115,000.
  10. Glenn W. Welling, a Director of coffee company BRC Inc. (BRCC), purchased 17,712 shares at an average price of $5.97 totaling $105,765.
  11. Martine Gerow, the Chief Financial Officer of business-to-business travel platform Global Business Travel Group, Inc. (GBTG), purchased 10,000 shares at an average price of $5.60 totaling $56,000.
  12. John H. Anderson, the CEO regional bank QCR Holdings, Inc. (QCRH), purchased 1,069 shares at an average price of $49.53 totaling $52,948.
  13. James M. Garnett, a Director of regional bank Bankwell Financial Group, Inc. (BWFG), purchased 1,759 shares at an average price of $28.97 totaling $50,965.
  14. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,424.54 totaling $50,915.
  15. Allison Green, the CFO of holding company SuRo Capital, Corp. (SSSS), purchased 12,908 shares at an average price of $3.77 totaling $48,696.
  16. Laura L. Johnson, a Director of regional bank Capital City Bank Group, Inc. (CCBG), purchased 1,000 shares at an average price of $33.11 totaling $33,110.
  17. Richard Caring, a Director of the company that owns Soho Houses and The Ned in London, Membership Collective Group Inc. (MCG), purchased 8,000 shares at an average price of $3.64 totaling $29,147.
  18. Scot Cohen, a Director of restraining devices company Wrap Technologies, Inc. (WRAP), purchased 10,000 shares at an average price of $2.65 totaling $26,546.
  19. Julien G. Patterson, a Director of regional bank Blue Ridge Bankshares, Inc. (BRBS), purchased 2,072 shares at an average price of $12.76 totaling $26,432.

Spinoffs

  1. Brookfield Reinsurance (BAMR) announced that it has completed the previously announced special distribution of shares of Brookfield Asset Management Ltd. to the holders of our Company’s class A exchangeable limited voting shares and class B limited voting shares.

SPACs

  1. Better World Acquisition Corp. (BWAC) entered into a Business Combination Agreement with Heritage Distilling Holding Company, Inc.
  2. Getaround (GETR) completed its previously announced business combination with InterPrivate II Acquisition Corp.

Stock Buyback Announcements

  1. Magyar Bancorp, Inc. (MGYR) has authorized an additional stock repurchase program pursuant to which the company intends to repurchase up to 5% of its outstanding shares, or up to 337,146 shares. It has also completed the stock repurchase program authorized on July 21, 2022, repurchasing 354,891 shares at an average price of $12.90.

C-Suite Transitions

Appointments

  1. Rollins (ROL): appoints Jerry E. Gahlhoff, Jr. as Chief Executive Officer, in addition to his role as President, effective January 1, 2023.
  2. HyreCar (HYRE): appoints Eduardo Iniguez to serve as the Interim Chief Executive Officer.
  3. NuScale Power (SMR): announced that effective January 6, 2023, Karin Feldman will assume the role of Interim Chief Operating Officer/Chief Nuclear Officer.
  4. OptiNose (OPTN): appoints Michele Janis as Chief Financial Officer effective on December 30, 2022.
  5. Theralink Technologies (THER): appoints Faith Zaslavsky, as President and Chief Operating Officer

Departures

  1. Rollins (ROL): Gary W. Rollins, current Chief Executive Officer, resigns and will continue to serve as Executive Chairman, also effective January 1, 2023.
  2. NuScale Power (SMR): Dale Atkinson will retire as Chief Operating Officer/Chief Nuclear Officer effective January 5, 2023.
  3. OptiNose (OPTN): Michele Janis resigns as the Acting Chief Financial Officer effective on December 30, 2022.
  4. Chewy (CHWY): announced Mario Marte, the company’s Chief Financial Officer, intends to retire in 2023.
  5. PriceSmart (PSMT): announced Sherry Bahrambeygui will be resigning as Chief Executive Officer, effective February 3, 2023.

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