InsideArbitrage Event Driven Monitor – January 23, 2023

  • January 23, 2023

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

Merger Arbitrage

  1. Benefitfocus (BNFT) announced that its stockholders approved the merger agreement with Voya Financial (VOYA). The transaction is expected to close on January 24, 2023.
  2. The Austrian Federal Competition Authority approved Thoma Bravo’s proposed acquisition of Coupa Software Incorporated (COUP).
  3. Vivint Smart Home (VVNT) announced that the applicable waiting period under the HSR Act expired on January 19, 2023.
  4. Altra Industrial Motion (AIMC) disclosed that the company’s planned sale to Regal Rexnord (RRX) was filed under a simplified procedure with China’s antitrust regulator.
  5. Atlas Corp. (ATCO) announced that it will hold its Annual Meeting of Shareholders on February 24, 2023.

Deals In The Works

  1. According to Bloomberg, Western Digital Corp. (WDC) and Japan’s Kioxia Holdings Corp. are progressing in their merger talks and have figured out a rough structure that would eventually involve a dual-listing in Japan.
  2. Atlas Corp. (ATCO) On Feb 24, 2023, at the Annual Meeting, Atlas common shareholders are asked to among other matters, to vote upon a proposal to adopt and approve the previously announced Agreement and Plan of Merger among Atlas, Poseidon Acquisition Corp.
  3. iClick Interactive Asia Group (ICLK) announces the Special Committee is still at the preliminary stage of reviewing and evaluating the proposal and has not made any decision with respect to the company’s response to the proposal.
  4. According to Bloomberg, Saudi Arabia explored a bid to buy Formula One Group (FWONA) for over $20 Billion, remains interested in the asset, and would be a serious bidder should Liberty Media change its mind and decide to sell, the people said.

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. Andrew R. Heyer, a Director of furniture company Lovesac Co (LOVE), purchased 30,994 shares at an average price of $22.13 totaling $685,990.
  2. Francis S. Blake, a Director of Delta Air Lines, Inc. (DAL), purchased 12,880 shares at an average price of $38.58 totaling $496,904.
  3. Richard W. Baker, a Director of regional bank Guaranty Bancshares (GNTY), purchased 11,629 shares at an average price of $34.49 totaling $401,084.
  4. Tobias Lutke, a Director of cryptocurrency brokerage Coinbase Global, Inc. (COIN), purchased 6,834 shares at an average price of $54.21 totaling $370,471.
  5. Thomson Leighton, the Chief Executive Officer of security software and CDN services provider Akamai Technologies, Inc. (AKAM), purchased 853 shares at an average price of $88.10 totaling $75,148.
  6. Wes Cummins, the CEO; Chairman of datacenter operator Applied Blockchain, Inc. (APLD), purchased 25,000 shares at an average price of $2.40 totaling $60,000.
  7. Mellody L. Hobson, a Director of JPMorgan Chase & Co. (JPM), purchased 375 shares at an average price of $134.53 totaling $50,448.
  8. David B. Ramaker, a Director of regional bank Mercantile Bank Corp. (MBWM), purchased 1,500 shares at an average price of $33.33 totaling $49,995.
  9. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,112.14 totaling $44,355.

SPACs

  1. Openmarkets Group Pty Ltd and Broad Capital Acquisition Corp. (BRAC) entered into a definitive Agreement and Plan of Merger and Business Combination Agreement.

Spinoffs

  1. According to Bloomberg, Western Digital (WDC) would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US.

Stock Buyback Announcements

  1. Costco Wholesale Corporation (COST) has reauthorized a common stock repurchase program of up to $4 billion. This program will expire in January 2027 and replaces the current $4 billion program and represents around 2% of its market cap at announcement.
  2. Huntington Bancshares Incorporated (HBAN) approved a $1 billion share repurchase authorization for the next eight quarters. This represents around 5% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Enviva (EVA): promotes Jason E. Paral to Senior Vice President, General Counsel.
  2. Battalion Oil Corp (BATL): appoints Kristen McWatters as Chief Financial Officer and Treasurer, effective as of January 26, 2023.
  3. NovaBay Pharmaceuticals (NBY): appoints Tommy Law, as Interim Chief Financial Officer and Treasurer, effective February 16, 2023.
  4. Republic First Bancorp (FRBK): appoints Michael LaPlante as Senior Vice President and Chief Accounting Officer.
  5. Super League Gaming (SLGG): appoints Matt Edelman as President in addition to his current role as the Chief Commercial Officer.
  6. Journey Medical Corp (DERM):  appoints Joseph Benesch, Corporate Controller, as the company’s interim Chief Financial Officer, effective January 27, 2023.
  7. Vince Holding (VNCE): appoints Amy “Levy” Trooskin as Chief Financial Officer, effective February 10, 2023.
  8. RumbleOn (RMBL): appoints Blake Lawson as Chief Financial Officer, effective January 19, 2023.
  9. DMC Global (BOOM): appoints Eric Walter as the Chief Financial Officer.

Departures

  1. Clover Health Investments Corp (CLOV): Prabhdeep Singh steps down from his position as Chief Growth Officer, effective March 31, 2023.
  2. Enviva (EVA): William H. Schmidt, Jr. stepped down from his position as General Counsel.
  3. Battalion Oil Corp (BATL): R. Kevin Andrews steps down as Chief Financial Officer.
  4. NovaBay Pharmaceuticals (NBY): Andrew Jones voluntarily resign from his position as Chief Financial Officer and Treasurer effective as of February 15, 2023.
  5. Super League Gaming (SLGG): Mike Wann stepped down from his position as Chief Strategy Officer.
  6. Journey Medical (DERM): Ernest De Paolantonio  Chief Financial Officer resigns, effective January 27, 2023.
  7. Vince Holding (VNCE): David Stefko, Chief Financial Officer plans to retire effective February 10, 2023.
  8. RumbleOn (RMBL): Narinder Sahai Chief Financial Officer steps down.
  9. 180 Life Sciences Corp (ATNF): Quan Vu resigned as Chief Operating/Chief Business Officer.

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.