Merger Arbitrage Mondays – April 21, 2014

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April 21, 2014 | Merger Arbitrage | | Author Asif

Merger Activity declined last week with one new merger announced, and two deals closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2014 49
Total Number of Pending Deals
Cash Deals 40
Stock Deals 14
Stock & Cash Deals 12
Total Number of Pending Deals 66
Total Deal Size $235.33 billion

New Deals:

  1. The acquisition of FedFirst Financial (FFCO) by CB Financial Services (CBFV) for $54.5 million in an all stock deal. Under the terms of the agreement, shareholders of FedFirst Financial will entitled to elect to receive $23.00 in cash or shares of CB common stock based on a fixed exchange ratio of 1.1590 shares of CB common stock for each share of FedFirst common stock, subject to proration to ensure that at closing 65% of the outstanding shares of FedFirst common stock are exchanged for shares of CB common stock and the remaining 35% are exchanged for cash.

Deal Updates:

  1. On April 14, 2014, Safeway (SWY), completed the distribution to its stockholders of 37,838,709 shares of Class B common stock of Blackhawk Networks Holdings, Inc. owned by Safeway. After the completion of the distribution, Safeway no longer owns any shares of Class B common stock of Blackhawk. After this spin-off, the adjusted purchase price for Safeway is $36.15 ($32.50 in cash and $3.65 in CVRs).

Closed Deals:

  1. The acquisition of Trunkbow International Holdings (TBOW) by Trunkbow Merger Group Limited on April 14, 2014. It took 125 days for this deal to be completed.
  2. The acquisition of Hi-Tech Pharmacal (HITK) by Akorn (AKRX) on April 17, 2014. It took 233 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $23.75 03/31/2015 17.14% 18.18%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.58 06/30/2014 16.28% 84.88%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.80 05/31/2014 14.29% 130.36%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.53 $3.98 03/31/2014 13.79% -239.71%
EQU 12/09/2013 Petroflow Energy Corporation (N/A) $5.43 $4.80 03/31/2014 13.13% -228.13%
FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) $24.05 $21.80 11/15/2014 10.32% 18.11%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $84.07 $76.95 09/30/2014 9.25% 20.85%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.65 03/31/2014 7.88% -136.94%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.51 $15.38 03/31/2014 7.33% -127.33%
ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) $5.45 $5.11 09/30/2013 6.65% -11.96%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $23.75 62,525 03/31/2015 17.14% 18.18%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.58 338,358 06/30/2014 16.28% 84.88%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.80 9,142 05/31/2014 14.29% 130.36%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.53 $3.98 116,317 03/31/2014 13.79% 0.00%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $4.80 409,214 03/31/2014 13.13% 0.00%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $24.05 $21.80 10,415 11/15/2014 10.32% 18.11%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $84.07 $76.95 2,178,804 09/30/2014 9.25% 20.85%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.65 49,007 03/31/2014 7.88% 0.00%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.51 $15.38 21,336 03/31/2014 7.33% 0.00%
+ ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) All Cash N/A $5.45 $5.11 48,252 09/30/2013 6.65% 0.00%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.19 6,200 04/30/2014 6.64% 269.48%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $6.84 12,118 03/31/2014 5.99% 0.00%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.12 3,097,905 12/31/2014 5.95% 8.55%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.72 N/A 06/30/2014 4.65% 24.25%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $141.16 $135.33 2,283,252 12/31/2014 4.31% 6.19%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.92 $21.98 148,543 09/30/2014 4.28% 9.65%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.78 505,465 06/30/2014 4.05% 21.12%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.21 $9.90 2,240,550 12/31/2014 3.16% 4.54%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $18.74 $18.18 9,816 06/30/2014 3.08% 16.06%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $11.43 386,797 12/31/2014 2.80% 4.02%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.69 705,722 12/31/2014 2.65% 3.81%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.42 30,575 06/30/2014 2.63% 13.72%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.83 2,355 06/30/2014 2.17% 11.32%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.94 6,100 06/30/2014 2.04% 10.64%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $6.965 422,497 09/30/2014 1.94% 4.37%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $91.30 $89.58 1,095,921 06/30/2014 1.92% 10.00%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.65 840,350 09/30/2014 1.69% 3.82%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.12 $33.57 326,697 12/31/2014 1.64% 2.36%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.97 23,321 03/31/2014 1.52% 0.00%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.81 34,959 08/15/2014 1.42% 4.48%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.78 13,262 04/30/2014 1.39% 56.54%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $78.25 $77.49 2,450 06/30/2014 0.98% 5.11%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.45 795,391 06/30/2014 0.85% 4.45%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.42 1,286,802 09/30/2014 0.85% 1.91%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $30.15 $29.90 442,199 09/30/2014 0.85% 1.91%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $39.10 $38.78 1,738,686 06/30/2014 0.82% 4.27%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $23.04 $22.85 12,162 06/30/2014 0.81% 4.23%
+ CEDU 12/31/2013 ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A) All Cash N/A $7.00 $6.95 1,028 06/30/2014 0.72% 3.75%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.89 $7.84 66,064 12/31/2014 0.58% 0.83%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.09 3,522,532 06/30/2014 0.54% 2.82%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 2.33%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $18.13 $18.06 50,268 06/30/2014 0.41% 2.12%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $33.23 $33.10 2,219,558 06/30/2014 0.38% 2.00%
+ BEAM 01/13/2014 Suntory Holdings Limited (N/A) All Cash $16 billion $83.50 $83.27 3,972,700 06/30/2014 0.28% 1.44%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.47 $20.42 166,459 09/30/2014 0.23% 0.52%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.13 177,819 12/31/2014 0.20% 0.29%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $11.76 $11.74 694,416 06/30/2014 0.18% 0.91%
+ ANLY 08/28/2013 ACS Motion Control, Ltd. (ACSEF) All Cash $35 million $6.45 $6.44 N/A 12/31/2013 0.16% 0.00%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.39%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $49.89 $49.86 3,084 09/30/2014 0.07% 0.15%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.99 505,932 06/30/2014 0.06% 0.29%
+ ATMI 02/04/2014 Entegris, Inc. (ENTG) All Cash $1.15 billion $34.00 $33.99 302,413 06/30/2014 0.03% 0.15%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $13.18 $13.18 1,470,222 12/31/2014 0.02% 0.02%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $87.89 $87.87 147,137 06/30/2014 0.02% 0.09%
+ ACCL 01/30/2014 Dassault Syst�mes (N/A) All Cash $750 million $12.50 $12.50 157,169 06/30/2014 0.00% 0.00%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.75 306,410 05/02/2014 0.00% 0.00%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.25 405,995 06/30/2014 0.00% 0.00%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.69 $17.70 10,416 06/30/2014 -0.04% -0.20%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $23.89 $23.90 1,652 03/31/2014 -0.06% 1.02%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.04 892,523 06/30/2014 -0.19% -0.99%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.40 132,572 06/30/2014 -0.56% -2.90%
+ COA 02/27/2014 Essilor International (N/A) All Cash $430 million $11.21 $11.28 90,402 06/30/2014 -0.62% -3.24%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $22.91 $23.06 32,622 06/30/2014 -0.65% -3.40%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.61 345,097 06/30/2014 -0.74% -3.86%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.09 $6.18 12,381 06/30/2014 -1.50% -7.80%
+ CHDX 02/17/2014 a buyer consortium (the “Buyer Consortium”) of an affiliate of TPG (together with its affiliates, “TPG”), an affiliate of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun”), and Ms. Roberta Lipson, the CEO of the Company (N/A) All Cash $369 million $19.50 $22.94 45,011 12/31/2014 -15.00% -21.55%

Voluntary Disclosure: I hold a long position in Safeway (SWY).

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria




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