InsideArbitrage Event Driven Monitor – June 4, 2025

Merger Arbitrage

1. STR: The acquisition of Sitio Royalties Corp. (STR) by Viper Energy, Inc. (VNOM), a subsidiary of Diamondback Energy, Inc. (FANG), for a closing value of $4.1 billion. Under the terms of the agreement, each Sitio shareholder will receive 0.4855 shares of a new company called “pro forma Viper” for every share of Sitio Class A stock they own. Also, for each unit of Sitio’s operating company, investors will get 0.4855 units of Viper’s operating company, Viper Energy Partners LLC. If someone owns Sitio Class C stock, they will also get the same amount (0.4855) of Class B shares in pro forma Viper. The ratio represents an implied value of $19.41 per share to each Sitio stockholder, representing a premium of 12.07% from the stock’s last close. (Press Release)
2. AZEK: The AZEK Company (AZEK) announced that the applicable waiting period under the HSR Act expired on June 2, 2025.

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