InsideArbitrage Event Driven Monitor – January 4, 2023

  • January 4, 2023

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

Merger Arbitrage

  1. The acquisition of Horizon Global Corporation (HZN) by First Brands Group for $1.63 billion or $1.75 per share in cash.
  2. Shaw Communications (SJR) issued a statement in reaction to the decision of the Competition Tribunal, stating that it continues to engage with government officials to obtain the final regulatory approval.
  3. Viatris (VTRS) has completed the acquisition of Oyster Point Pharma (OYST).

Deals In The Works

  1. German chemicals distributor Brenntag said it is ending talks with smaller U.S. rival Univar Solutions (UNVR) on a possible takeover, weeks after activist investor PrimeStone called on the company to consider a break-up instead.
  2. Bradley L. Radoff and Michael Torok, who own approximately 8.4% of the outstanding common stock of Sesen Bio (SESN) reiterated their intent to vote AGAINST the Company’s proposed merger with Carisma Therapeutics.
  3. A potential deal we added on August 8, 2022, Horizon Global Corporation (HZN) announced it has entered into a definitive merger agreement with First Brands Group.

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. Eric Andersen, a Director of biotechnology company Merrimack Pharmaceuticals, Inc. (MACK), purchased 259,936 shares at an average price of $10.67 totaling $2.77 million. These shares were purchased indirectly through Western Standard Partners.
  2. Donald J. Hayden, a Director of biotechnology company Theseus Pharmaceuticals, Inc. (THRX), purchased 10,000 shares at an average price of $5.00 totaling $49,989. Foresite Capital Management, a 10% owner of the company, also picked up $2.5 million worth of stock.
  3. Christopher Shackelton, a Director of automotive training company Universal Technical Institute, Inc. (UTI), purchased 90,340 shares at an average price of $6.67 totaling $602,568. This purchase was made indirectly through Coliseum Capital Management.
  4. William D. Nash, the President & CEO of used car retailer Carmax, Inc. (KMX), purchased 8,220 shares at an average price of $60.98 totaling $501,256.
  5. Wes Cummins, a Director of communication equipment company CalAmp Corp. (CAMP), purchased 55,000 shares at an average price of $4.42 totaling $243,097. These shares were purchased indirectly through B. Riley Asset Management.
  6. Richard Hermanns, the President and CEO of staffing & employment services franchisor HireQuest, Inc. (HQI), purchased 6,316 shares at an average price of $15.00 totaling $94,709. We wrote about HireQuest briefly on Sunday in an article titled Insider Weekends: Independent Director of Microcap Company HireQuest Purchases Shares.
  7. Catherine A. Lynch, a Director of mortgage REIT PennyMac Mortgage Investment Trust (PMT), purchased 5,000 shares at an average price of $12.39 totaling $61,943.
  8. Snehal Patel, the CEO and CFO of biotechnology company Greenwich LifeSciences, Inc. (GLSI), purchased 4,000 shares at an average price of $15.19 totaling $60,760.
  9. Murray Stahl, a Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 21 shares at an average price of $2,366.15 totaling $49,689.

SPACs

  1. Monterey Capital Acquisition Corporation (MCAC) and ConnectM Technology Solutions announced the signing of a definitive merger agreement.
  2. HNR Acquisition Corp (HNRA) entered into a membership interest purchase agreement with Pogo Resources.
  3. Tiedemann Group, Alvarium Investments Limited and Cartesian Growth Corporation (GLBL) completed their previously announced business combination.

Stock Buyback Announcements

  1. InterDigital, Inc. (IDCC) has authorized an increase to the company’s existing stock repurchase program by approximately $333 million to a total of $400 million. This represents around 23% of its market cap at announcement.
  2. Immersion Corporation (IMMR) authorized a new $50 million stock repurchase program, representing nearly 20% of its market cap at announcement.
  3. Global Indemnity Group, LLC (GBLI) has authorized an additional repurchase amount of $38.1 million for an aggregate stock purchase program of $60 million. This represents around 11% of its market cap at announcement.
  4. So-Young International Inc. (SY) has authorized an increase under the program from US$15 million to US$25 million to demonstrate the Company’s confidence in its long-term prospects. This represents around 7.3% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Zhihu Inc. (ZH): appoints Henry Dachuan Sha as a Director and the Chief Financial Officer of the company, effective immediately.
  2. Hawaiian Electric Industries (HE): appoints Paul K. Ito as Executive Vice President and Chief Financial Officer, effective January 1, 2023.
  3. Washington Federal (WAFD): appoints Cathy Cooper temporarily as President and Chief Executive Officer.
  4. Histogen (HSTO): appoints Alfred P. Spada as Chief Scientific Officer, effective as of February 1, 2023.
  5. Entravision Communications Corporation (EVC): appoints Christopher T. Young, Chief Financial Officer and Treasurer of the Company, as the company’s Interim Chief Executive Officer.
  6. Immersion Corp (IMMR): appoints Eric Singer as the company’s President, Chief Executive Officer and Chairman of the Board, effective January 3, 2023.
  7. Weatherford International  (WFRD): appoints Arunava Mitra, as Executive Vice President and Chief Financial Officer, effective January 3, 2023.
  8. Carrols Restaurant Group (TAST): appoints Anthony E. Hull as Interim President and Chief Executive Officer.
  9. Patterson-UTI Energy (PTEN): appoints James M. Holcomb, as Chief Operating Officer.

Departures

  1. Zhihu (ZH): Wei Sun, Director and Chief Financial Officer stepped down to pursue other business endeavors.
  2. Washington Federal (WAFD): Brent Beardall, President, and CEO was in a private plane crash in Provo, Utah, and will take a temporary leave of absence while he recovers.
  3. Brain Scientific (BRSF) Fred Anthony resigns as Chief Technology Officer.
  4. Entravision Communications Corporation (EVC): Walter F. Ulloa, Chairman, and Chief Executive Officer, passed away on December 31, 2022.
  5. Carrols Restaurant Group (TAST): Paulo A. Pena, President, and Chief Executive Officer passed away on December 31, 2022.

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.