Playing Legos With Proteins – Merger Arbitrage Mondays

Key Highlights

• AstraZeneca acquires an innovative vaccine development company with a unique technology for $15 per share in cash and a $5 CVR.
• After several months of rumors, a deal for Hollysys Automation (HOLI) finally came through well above where the stock was trading after the rumors.
• Following the filing of post-trial briefs by both JetBlue and the DOJ, the spread on the Spirit Airlines – JetBlue deal declines by 11.24% week-over-week but still remains unusually wide at 101.82%.

Icosovax (ICVX) $15.68

Market Cap: $787.62 million

Enterprise Value: $558.42 million

AstraZeneca (AZN) announced the acquisition of an innovative vaccine development firm Icosovax last week in a deal valued at $435.14 million. Under the terms of the agreement, AstraZeneca, will initiate a tender offer to acquire all of Icosavax’s outstanding shares for a price of $15.00 per share in cash. The deal also includes a contingent value right (CVR) of $5.00 per share in cash payable upon achievement of a specified regulatory milestone and a sales milestone.

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