InsideArbitrage Event Driven Monitor – December 5, 2022

  • December 5, 2022

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

Merger Arbitrage

  1. According to the New York Post, a rift has emerged at the Federal Trade Commission over Microsoft’s (MSFT) deal to acquire Activision (ATVI) — potentially paving the way for the controversial mega-merger to get approved.
  2. Albertsons Companies (ACI) filed its preliminary proxy statement, stating that the parties filed their respective notification and report forms pursuant to the HSR Act with the Antitrust Division of the U.S. Department of Justice and the Federal Trade Commission on November 3, 2022.
  3. AVEO Oncology (AVEO) announced that the waiting period under the HSR Act expired with respect to the merger. Also on December 1, 2022, AVEO and LG Chem received a notice from CFIUS indicating that the joint voluntary notice submitted by AVEO and LG Chem on November 25, 2022, has been accepted for review, with December 1, 2022, constituting the first day of the 45-day initial review period, which will expire on January 17, 2023.

Deals in the Works

  1. According to WSJ, Johnson & Johnson (JNJ) unit, Janssen Global Services said that it does not intend to make an offer for biotech company Horizon Therapeutics Plc (HZNP)
  2. According to Reuters, French drugmaker Sanofi said that if it decides to bid for biotech company Horizon Therapeutics Plc (HZNP), it would do so in cash.

Insider Purchases

  1. Wayne P. Rothbaum, a Director of biotechnology company Iovance Biotherapeutics, Inc. (IOVA), purchased 10,000,000 shares at an average price of $6.50 totaling $65 million. These shares were purchased indirectly through Quogue Capital LLC.
  2. Jeffrey W. Ubben, a Director of wood pellets manufacturer Enviva Inc. (EVA), purchased 228,697 shares at an average price of $54.78 totaling $12.53 million. These shares were purchased indirectly through Inclusive Capital Partners. We wrote about cluster buying in Enviva in October in an article titled Insider Weekends: Cluster Insider Buying at Enviva After Short Seller Report.
  3. Matthew Jacobson, a Director of cloud software company Datadog, Inc. (DDOG), purchased 19,702 shares at an average price of $70.42 totaling $1.39 million. I wrote about Datadog last month in an article titled Datadog And Redfin: Two Technology Companies With Recent Insider Buying.
  4. Alan Yu, the CEO & Chairman of the BOD of packaging & containers company Karat Packaging Inc. (KRT), purchased 47,900 shares at an average price of $14.06 totaling $673,453.
  5. Jay Farner, the Chief Executive Officer of mortgage originator Rocket Companies, Inc. (RKT), purchased 47,700 shares at an average price of $8.37 totaling $399,234. Matthew Rizik, a Director of the company, also purchased 5,200 shares at an average price of $8.38 totaling $43,576.
  6. Stephen P. Larson, a Director of metal fabrication company Ryerson Holding Corp (RYI), purchased 10,000 shares at an average price of $30.37 totaling $303,717.
  7. John G. Nackel, a Director of healthcare services company Pennant Group, Inc. (PNTG), purchased 20,000 shares at an average price of $10.13 totaling $202,600.
  8. Eric Singer, the Executive Chair of haptics technology company Immersion Corp. (IMMR), purchased 20,000 shares at an average price of $7.29 totaling $145,800.
  9. Jeffrey Gould, the President and CEO of multifamily REIT BRT Apartments Corp. (BRT), purchased 4,626 shares at an average price of $20.14 totaling $93,161.
  10. Lee D. Roberts, a Director of IT services company Unisys Corp. (UIS), purchased 20,000 shares at an average price of $4.37 totaling $87,400.
  11. James W. Green, the Chief Executive Officer of medical instruments & supplies company Harvard Bioscience, Inc.(HBIO), purchased 30,000 shares at an average price of $2.51 totaling $75,300.
  12. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,603.55 totaling $54,675.
  13. Charles N. Reeves, the Chief Executive Officer of regional bank MidWestOne Financial Group, Inc. (MOFG), purchased 1,483 shares at an average price of $34.48 totaling $51,128.
  14. James Slavet, a Director of real estate services company Redfin Corp (RDFN), purchased 6,667 shares at an average price of $5.47 totaling $36,442.

SPACs

  1. Alchemy Investments Acquisition Corp 1 filed for a $100 million IPO

Stock Buyback Announcements

  1. The Raymond James Financial, Inc. (RJF) authorized $1.5 billion share repurchase, representing around 6% of its market cap at announcement. This replaces the previous repurchase authorization of $1 billion announced on December 2, 2021, under which approximately $800 million remained as of December 1, 2022.
  2. FTI Consulting, Inc. (FCN) authorized $400 million additional stock repurchase program, representing around 7% of its market cap at announcement.
  3. Rush Enterprises, Inc. (RUSHA), approved a new $150 million stock repurchase program, representing around 5.3% of its market cap at announcement.

Updates:

  1. Gulf Resources (GURE) to repurchase 80,000 shares from each of CEO Xiaobin Liu, COO Naihui Miao, and CFO Min Li in a privately negotiated transaction based on the closing price of the stock of $3.5931/share on Wednesday, November 30, 2022.
  2. Genesco Inc. (GCO) repurchased 451,343 shares during the third quarter of Fiscal 2023 at a cost of $20.8 million or an average of $46.01 per share. The Company currently has $34.1 million remaining on its expanded share repurchase authorization announced in February 2022.

C-Suite Transitions

Appointment

  1. Raymond James Financial (RJF): appointed Jonathan (“Butch”) Oorlog, Jr. as Chief Accounting Officer, effective January 1, 2023.
  2. American Axle & Manufacturing Holdings (AXL): appointed Michael J. Lynch as Chief Operating Officer effective December 1, 2022.
  3. Establishment Labs Holdings (ESTA): appointed Paul D. Rodio to the position of Chief Operating Officer of the company.
  4. Indie Semiconductor (INDI): appointed Raja Bal as the Chief Accounting Officer.
  5. WeTrade Group (WETG): Annie Huang was appointed as the Chief Financial Officer of the company, effective November 29, 2022.
  6. LuxUrban Hotels (LUXH): announced Shanoop Kothari, Chief Financial Officer, assumed the added responsibility of President and Jimmie Chatmon, EVP was promoted to Chief Operating Officer, both effective November 30, 2022.
  7. Insteel Industries (IIIN): Scot R. Jafroodi, current Chief Accounting Officer, was named as Chief Financial Officer.
  8. Maravai LifeSciences (MRVI): announced Carl Hull to continue to serve as Executive Chairman and Interim CEO and William “Trey” Martin, III will assume the role of Chief Executive on July 27, 2023.
  9. H World Group (HTHT): announced Jihong He, the company’s CEO for international business, has been appointed as the Chief Financial Officer.
  10. Copart (CPRT): announced Leah Stearns as Chief Financial Officer and Paul Kirkpatrick as Chief Legal Officer
  11. Opendoor Technologies (OPEN): appoints Chief Financial Officer Carrie Wheeler as Chief Executive Officer and Chief Accounting Officer Christy Schwartz will become interim Chief Financial Officer.

Departures

  1. Momentus (MNTS): Jikun Kim, the Chief Financial Officer, tendered his resignation from the company, effective January 6, 2023.
  2. Greenlane Holdings (GNLN): Darshan Dahya intents to resign as Chief Accounting Officer, effective December 31, 2022.
  3. WeTrade Group (WETG): Kean Tat Che tendered his resignation as Chief Financial officer.
  4. Insteel Industries (IIIN): Mark A. Carano, Chief Financial Officer has submitted his resignation from the company to pursue employment with another company.
  5. Community Health Systems (CYH): Wayne T. Smith, Executive Chairman of the Board will retire from his role, effective January 1, 2023.
  6. H World Group (HTHT): announced that Hui Chen will step down as the Chief Financial Officer.
  7. Opendoor Technologies (OPEN): President Andrew Low Ah Kee resigns.

 

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.