Merger Arbitrage Mondays – April 7, 2014

Bookmark and Share

April 7, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with three new mergers announced, and three 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 44
Total Number of Pending Deals
Cash Deals 39
Stock Deals 13
Stock & Cash Deals 12
Total Number of Pending Deals 64
Total Deal Size $227.02 billion

New Deals:

  1. The acquisition of SWS Group (SWS) by Hilltop Holdings (HTH) for $260 million in a cash plus stock deal. Under the terms of the agreement, shareholders of SWS Group will receive per share consideration of 0.2496 shares of Hilltop common stock and $1.94 of cash.
  2. The acquisition of DFC Global Corp (DLLR) by an affiliate of Lone Star Funds for $1.3 billion or $9.50 per share in cash.
  3. The acquisition of Noah Education Holdings (NED) by Rainbow Education Holding Limited in a ‘going private’ transaction for $2.85 per share in cash.

Closed Deals:

  1. The acquisition of Xyratex Ltd. (XRTX) by Seagate Technology Public Limited Company (STX) on March 31, 2014. It took 98 days for this deal to be completed.
  2. The acquisition of BRE Properties (BRE) by Essex Property Trust (ESS) on April 1, 2014. It took 103 days for this deal to be completed.
  3. The acquisition of Supertex (SUPX) by Microchip Technology (MCHP) on April 2, 2014. It took 51 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

EQU 12/09/2013 Petroflow Energy Corporation (N/A) $5.43 $4.43 03/31/2014 22.57% -1177.04%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.78 05/31/2014 15.11% 102.12%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.46 $3.88 03/31/2014 15.06% -785.03%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.61 06/30/2014 14.94% 64.93%
HOME 10/23/2013 Cascade Bancorp (CACB) $17.65 $15.51 03/31/2014 13.78% -718.60%
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 $5.04 09/30/2013 8.13% -15.71%
HWG 06/05/2013 Hallwood Financial Limited (N/A) $13.00 $12.25 04/30/2014 6.12% 97.16%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $26.28 03/31/2015 5.86% 5.97%
SWY 03/06/2014 AB Acquisition LLC (N/A) $40.00 $37.96 12/31/2014 5.37% 7.32%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $17.74 06/30/2014 4.28% 18.62%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $4.43 131,792 03/31/2014 22.57% 0.00%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.78 45,536 05/31/2014 15.11% 102.12%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.46 $3.88 39,795 03/31/2014 15.06% 0.00%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.61 857,097 06/30/2014 14.94% 64.93%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $17.65 $15.51 36,318 03/31/2014 13.78% 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 $5.04 81,185 09/30/2013 8.13% 0.00%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.25 3,150 04/30/2014 6.12% 97.16%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $26.28 411,279 03/31/2015 5.86% 5.97%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $40.00 $37.96 4,794,025 12/31/2014 5.37% 7.32%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.74 117,181 06/30/2014 4.28% 18.62%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.67 $33.31 833,775 12/31/2014 4.09% 5.56%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.55 2,002,172 12/31/2014 3.90% 5.31%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $144.27 $139.17 2,910,715 12/31/2014 3.66% 4.99%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $11.35 2,070,798 12/31/2014 3.52% 4.80%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.13 $9.79 3,447,057 12/31/2014 3.47% 4.73%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.40 39,038 06/30/2014 3.24% 14.06%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.748 17,292 06/30/2014 2.97% 12.93%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.78 6,390 06/30/2014 2.83% 12.29%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $16.72 $16.26 N/A 01/31/2014 2.82% 0.00%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.95 21,481 03/31/2014 2.56% 0.00%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 53,311 08/15/2014 2.52% 7.07%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $80.27 $78.50 63 06/30/2014 2.26% 9.80%
+ 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 $19.07 69,524 12/31/2014 2.25% 3.07%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $92.59 $90.56 2,286,185 06/30/2014 2.25% 9.76%
+ TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) All Cash N/A $1.46 $1.43 439,680 03/31/2014 2.10% 0.00%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 18,545 06/30/2014 1.69% 7.36%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.14 7,000 03/31/2014 1.54% 0.00%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.76 33,236 04/30/2014 1.52% 24.17%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $31.72 $31.28 554,773 09/30/2014 1.41% 2.92%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $8.05 $7.94 1,124,424 12/31/2014 1.39% 1.89%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $38.83 $38.32 742,048 06/30/2014 1.33% 5.77%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.76 6,201 03/31/2014 1.14% 0.00%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.37 695,150 06/30/2014 0.98% 4.25%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.07 5,454,722 06/30/2014 0.72% 3.14%
+ 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 41,969 06/30/2014 0.72% 3.13%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $89.39 $88.81 238,973 06/30/2014 0.65% 2.84%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $18.83 $18.71 1,886 06/30/2014 0.64% 2.79%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $49.17 $48.86 5,931 09/30/2014 0.63% 1.30%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $59.90 439,927 12/31/2014 0.58% 0.80%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.34 40,642 06/30/2014 0.56% 2.44%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.51 $20.40 90,438 09/30/2014 0.55% 1.14%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $12.06 $12.00 707,368 06/30/2014 0.51% 2.23%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 1.94%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.90 $17.84 29,234 06/30/2014 0.32% 1.41%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.37 140,095 03/31/2014 0.30% 0.00%
+ JNY 12/19/2013 Sycamore Partners (N/A) All Cash $1.2 billion $15.00 $14.96 1,540,241 06/30/2014 0.27% 1.16%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $18.31 $18.26 36,107 06/30/2014 0.27% 1.15%
+ BEAM 01/13/2014 Suntory Holdings Limited (N/A) All Cash $16 billion $83.50 $83.28 2,253,038 06/30/2014 0.26% 1.15%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.48 3,517,206 09/30/2014 0.21% 0.44%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.16 548,459 06/30/2014 0.19% 0.81%
+ ATMI 02/04/2014 Entegris, Inc. (ENTG) All Cash $1.15 billion $34.00 $33.94 377,747 06/30/2014 0.18% 0.77%
+ ACCL 01/30/2014 Dassault Syst�mes (N/A) All Cash $750 million $12.50 $12.48 247,472 06/30/2014 0.16% 0.70%
+ 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%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $33.29 $33.26 134,249 06/30/2014 0.10% 0.44%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $23.79 $23.77 6,841 06/30/2014 0.08% 0.37%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.32%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.74 406,026 04/30/2014 0.02% 0.35%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.00 664,421 06/30/2014 0.00% 0.00%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $23.68 $23.69 56,272 06/30/2014 -0.04% -0.16%
+ CSE 07/22/2013 PacWest Bancorp (PACW) Cash Plus Stock $2.3 billion $15.57 $15.58 1,924,810 04/07/2014 -0.06% 0.00%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $24.41 $24.50 1,771 03/31/2014 -0.35% 18.30%
+ COA 02/27/2014 Essilor International (N/A) All Cash $430 million $11.21 $11.28 193,144 06/30/2014 -0.62% -2.70%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $12.57 $12.75 7,028,632 12/31/2014 -1.40% -1.91%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.46 $6.88 79,279 06/30/2014 -6.16% -26.76%

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

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




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter