InsideArbitrage Event Driven Monitor – December 29, 2022

  • December 29, 2022

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

Merger Arbitrage

  1. BP p.l.c. (BP) has completed the acquisition of Archaea Energy (LFG).
  2. The United Kingdom Competition and Markets Authority provided notice to UserTesting (USER) that it has no further questions on the merger at this time. The merger is expected to close in the first half of 2023.
  3. Seacoast (SBCF) and Professional (PFHD) announced that the mergers are expected to be completed on January 31, 2023.
  4. Resolute Forest Products (RFP) and The Paper Excellence Group jointly announced that the Canadian Commissioner of Competition has entered into a consent agreement regarding the parties’ business combination. The transaction remains on course to close in the first half of 2023.
  5. Brigham Minerals (MNRL) announced that the stockholders of the company voted in favor of all proposals necessary for the closing of the previously announced merger between Brigham and Sitio Royalties (STR).

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. Richard Caring, a Director of the company that owns Soho Houses and The Ned in London, Membership Collective Group Inc. (MCG), purchased 200,000 shares at an average price of $3.60 totaling $719,960.
  2. Shah Capital Management, the CFO of solar company ReneSola Ltd (SOL), purchased 92,090 shares at an average price of $4.11 totaling $378,490. I double checked this filing and it was the entity (Shah Capital Management) that was listed as the CFO/Chairman and Director and not an individual from the firm.
  3. Wes Cummins, a Director of transportation technology provider CalAmp Corp. (CAMP), purchased 25,000 shares at an average price of $4.17 totaling $104,340.
  4. A. James Teague, the Co-CEO of midstream oil and gas company Enterprise Products Partners L.P. (EPD), purchased 3,650 shares at an average price of $24.09 totaling $87,921.
  5. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,536.93 totaling $53,275.
  6. In a transaction we don’t come across often, we saw the CFO of industrial packaging company Greif sell class A shares (GEF) and purchase an equivalent dollar amount of class B shares (GEF.B), which cost almost $12 per share more than class A shares. Class A shares are non-voting shares and class B shares receive a higher share of earnings (dividends).

Spinoffs

  1. GE HealthCare Technologies (GEHC) will be added to the S&P 500 effective prior to the open of trading on January 4, 2023, replacing Vornado Realty Trust (VNO), which will move to the S&P MidCap 400 effective prior to the opening of trading on January 5, 2023, S&P Dow Jones Indices said in a statement.

Stock Buyback Announcements

  1. iClick Interactive Asia Group Limited (ICLK) has approved a $5 million share repurchase program from January 1, 2023 to December 31, 2023. This represents around 13% of its market cap at announcement.

Update:

  1. New Mountain Finance Corporation (NMFC) authorized an extension of a previously established $50 million stock repurchase program from December 31, 2022 through December 31, 2023.

C-Suite Transitions

Appointements

  1. Kingstone Cos. (KINS): appoints Victor Brodsky as interim Chief Accounting Officer.
  2. Immunogen (IMGN): appoints Renee Lentini as the Company’s interim Chief Financial Officer.
  3. Forza Petroleum (ORXPF): promotes Shane Cloninger Chief Executive Officer effective March 1, 2023.
  4. SJW Group (SJW): appoints Bruce A. Hauk as Chief Operating Officer, effective January 1, 2023.

Departures

  1. Kingstone Cos. (KINS) Richard Swartz, Chief Accounting Officer to resign for personal reasons to pursue other opportunities effective as of December 31, 2022.
  2. Forza Petroleum (ORXPF) Vance Querio, Chief Executive Officer, steps down effective March 1, 2023.

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.