We generally avoid writing about very small deals but decided to make an exception last week to feature the bidding war situation for tiny micro-cap bank Territorial Bancorp (TBNK). The bank was the subject our last Merger Arbitrage Mondays article after Blue Hill Advisors bumped up its all cash offer for Territorial to $12.50 per share, which in our view was clearly a superior proposal.
Shareholders welcomed a minor victory last week after ISS came out against the existing all stock deal Territorial has with Hope Bancorp (HOPE) and the stock appreciated to $11.42. Territorial also decided to push out its special meeting of shareholders to November 6, 2024. The spread on the existing deal is negative but it trades well below the $12.50 per share Blue Hill is offering and I would not be surprised to see them bump up the offer even more to seal the deal.
SilverCrest Metals Inc. (SILV): $10.13
Market Cap: $1.50 B
Deal Size: $1.7 B
Coeur Mining, Inc. (CDE) decided to acquire smaller peer SilverCrest Metals on October 4, 2024, in an all-stock deal valued at approximately $1.7 billion. Under the terms of the merger agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share, implying a consideration of $11.34 per share—representing a 22.07% premium over the stock’s last closing price.