InsideArbitrage Event Driven Monitor – December 23, 2022

  • December 23, 2022

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

Merger Arbitrage

  1. China Index Holdings Limited (CIH) to be acquired by CIH Holdings Limited in a ‘going-private’ transaction for $26.68 million or $1 per share in cash.
  2. CEO Rob Glaser has completed the acquisition of RealNetworks (RNWK).
  3. Johnson & Johnson (JNJ) has completed the acquisition of Abiomed (ABMD).
  4. On December 21, 2022, Albertsons Companies (ACI) announced that on December 19, 2022, the State of Washington Supreme Court set February 9, 2023 as the date for the review of the temporary restraining order (“TRO”) against the company’s previously announced $6.85 per common share Special Dividend.
  5. Congresswoman Maxine Waters (D-CA) has urged the Federal Trade Commission to conduct a robust review of Intercontinental Exchange’s (ICE) planned purchase of Black Knight (BKI).
  6. Opiant Pharmaceuticals (OPNT) and Indivior PLC filed a voluntary CFIUS Notice seeking approval of their merger.
  7. According to Reuters, Canada’s competition tribunal said that it had not arrived at a decision regarding the merger between Rogers Communications (RCI) and Shaw Communications (SJR).
  8. ForgeRock (FORG) and Thoma Bravo each received a request for additional information (the “Second Request”) from the Department of Justice in connection with the DOJ’s review of the merger.
  9. KnowBe4 (KNBE) announced that the special meeting of stockholders will be held on January 31, 2023.
  10. OpenText (OTEX) announced jointly with Micro Focus International (MFGP) that all regulatory conditions pertaining to the all-cash offer by OpenText to acquire Micro Focus have now been satisfied. The acquisition is expected to close on January 31, 2023.
  11. According to The Wall Street Journal, Microsoft (MSFTfiled a rebuttal to a Federal Trade Commission lawsuit aimed at blocking the software giant’s purchase of Activision Blizzard (ATVI) saying the deal will not hurt competition in the videogaming industry.

Deal In The Works

  1.  Kingstone Companies (KINS) announced they are no longer considering takeover proposals from Griffin Highline
  2. A potential deal we added on August 23, 2022, China Index Holdings Limited (CIH) announced the signing of definitive agreements relating to the going-private transaction

You can check out new deals, all deal updates and spreads on active deals in our Merger Arbitrage Tool for premium members here.

Insider Purchases

  1. Pershing Square Capital purchased 51,452 shares of diversified REIT Howard Hughes Corp (HHC) at an average price of $74.56 totaling $3.84 million.
  2. John Rakolta Jr., a Director of retail REIT Agree Realty Corp. (ADC), purchased 11,000 shares at an average price of $71.38 totaling $785,180.
  3. Tobias Lutke, a director of cryptocurrency brokerage Coinbase Global, Inc. (COIN), purchased 10,520 shares at an average price of $34.75 totaling $365,570.
  4. Jeffrey Gould, the CEO of multifamily REIT BRT Apartments Corp. (BRT), purchased 10,000 shares at an average price of $19.83 totaling $198,255.
  5. Jack Krause, the Chief Strategy Officer of furniture company Lovesac Co (LOVE), purchased 10,000 shares at an average price of $19.17 totaling $191,700.
  6. James Arthur Bristol, a Director of biotech company Erasca, Inc. (ERAS), purchased 20,000 shares at an average price of $4.14 totaling $82,800. Valerie Denise Start, another Director of the company, also purchased 10,000 shares at an average price of $4.64 totaling $46,400.
  7. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,574.11 totaling $54,056.
  8. Douglas K. Mellinger, a Director of cryptocurrency mining company Marathon Digital Holdings, Inc. (MARA), purchased 10,000 shares at an average price of $3.84 totaling $38,400.

SPACs

  1. Rain Enhancement Technologies and dMY Technology Group, Inc. VI (DMYS) entered into a business combination agreement.
  2. Far Peak Acquisition Corporation (FPAC) and Bullish mutually agreed to terminate their proposed business combination.

Spinoffs

  1. LiveOne (LVO), announced that it remains committed to spinning out its wholly owned subsidiary, PodcastOne, as a separate public company to be listed on a national exchange. In connection with such spin-out, LiveOne is moving the record date to January 15, 2023 for PodcastOne’s special dividend to LiveOne’s stockholders of record. In addition, LiveOne intends to explore spinning-out SlackerOne as a separate public company during its 2024 fiscal year.

Stock Buyback Announcements

  1. ReWalk Robotics Ltd. (RWLK) has approved an extension of the current program by up to $5.8 million, representing around 13% of its market cap at announcement.

Update:

  1. CarMax Reports Co. (KMX) has paused its share repurchase program amid its Q3 performance.

C-Suite Transitions

Appointments

  1. Enfusion (ENFN): appoints Oleg Movchan, Interim Chief Executive Officer, to the position of Chief Executive Officer of the company, effective immediately.
  2. Fulton Financial Corporation (FULT): appoints Curtis J. Myers as Chairman and Chief Executive Officer of Fulton, effective January 1, 2023.
  3. Loop Industries (LOOP): appoints Nicolas Lafond as Interim Chief Financial Officer effective December 30, 2022
  4. Accuray (ARAY): appoints Gina Corradetti, as the company’s Chief Accounting Officer effective January 3, 2023
  5. ATI Physical Therapy (ATIP): appoints Scott Gregerson as the company’s Chief Growth Officer to be effective as of January 3, 2023
  6. TechTarget (TTGT): appoints Rebecca Kitchens as President and Steven Niemiec as Chief Operating Officer & Chief Revenue Officer of the Company, effective January 1, 2023.
  7. Republic First Bancorp (FRBK): appoints Thomas X. Geisel as Chief Executive Officer and President, Michael W. Harrington as Chief Financial Officer

Departures

  1. Loop Industries (LOOP): Drew Hickey Chief Financial Officer resigns effective December 30, 2022.
  2. Accuray (ARAY): Franco Palomba informed his intent to resign from his position as Chief Accounting Officer effective January 3, 2023, due to personal reasons
  3. Lake Shore Bancorp (LSBK): Daniel P. Reininga President and Chief Executive Officer will retire effective May 17, 2023.
  4. Republic First Bancorp (FRBK): Harry Madonna will step down from the Interim Chief Executive Officer role.

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.