Merger Arbitrage Mondays – June 9, 2014

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June 8, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with four new mergers announced and five 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 75
Total Number of Pending Deals
Cash Deals 26
Stock Deals 18
Stock & Cash Deals 9
Special Conditions 8
Total Number of Pending Deals 61
Total Deal Size $311.37 billion

New Deals:

  1. The acquisition of American Realty Capital Healthcare Trust (HCT) by Ventas (VTR) for $2.6 billion. Under the terms of the agreement, shareholders of American Realty Capital Healthcare Trust can choose to receive 0.1688 Ventas common shares or $11.33 in cash for each common share of ARC Healthcare they own. Since the cash portion of the deal is subject to a cap of 10 percent of ARC Healthcare’s outstanding shares, we are treating this deal as an all-stock deal.
  2. The acquisition of Protective Life Corporation (PL) by Dai-ichi Life Insurance Company for $5.7 billion or $70.00 per share in cash.
  3. The acquisition of TF Financial Corporation (THRD) by National Penn Bancshares (NPBC) for $138 million. Under the terms of the agreement, shareholders of TF Financial Corporation may elect to receive either $42.00 in cash or a fixed exchange ratio of 4.22 shares of National Penn stock for each share of TF Financial common stock. Since only 40% of TF Financial shareholders will receive cash and 60% of shareholders will National Penn shares, we are treating this as an all-stock deal.
  4. The acquisition of LSB Financial Corp. (LSBI) by Old National Bancorp. (ONB) for $66.7 million in a cash plus stock deal. Under the terms of the agreement, shareholders of LSB Financial corporation will receive 2.269 shares of Old National common stock and $10.63 in cash for each share of LSB Financial common stock.

Deal Updates:

  1. On June 4, 2014, Nordion (NDZ) announced that it has entered into a second amendment with Sterigenics, providing that among other things, shareholder of Nordion will now be entitled to receive $13.00 per share upon closing of the proposed acquisition.

Closed Deals:

  1. The acquisition of Jefferson Bancshares (JFBI) by HomeTrust Bancshares (HTBI) on June 2, 2014. It took 130 days for this deal to be completed.
  2. The acquisition of Firstbank Corporation (FBMI) by Mercantile Bank (MBWM) on June 2, 2014. It took 291 days for this deal to be completed.
  3. The acquisition of Teche Holding Company (TSH) by IberiaBank (IBKC) on June 2, 2014. It took 140 days for this deal to be completed.
  4. The acquisition of EPL Oil & Gas (EPL) by Energy XXI (Bermuda) Limited (EXXI) on June 4, 2014. It took 84 days for this deal to be completed.
  5. The acquisition of NTS (NTS) by Tower Three Partners LLC on June 6, 2014. It took 228 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

PF 05/12/2014 The Hillshire Brands Company (HSH) $47.46 $31.55 09/30/2014 50.43% 162.89%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $1.98 11/15/2014 26.26% 60.29%
CHTP 05/08/2014 H. Lundbeck A/S (N/A) $7.94 $6.56 09/30/2014 21.04% 67.95%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $3.89 $3.35 03/31/2014 15.98% -83.30%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $83.34 05/31/2015 13.99% 14.34%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $97.58 $88.16 09/30/2014 10.69% 34.51%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.93 $3.58 12/31/2014 9.84% 17.51%
NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) $16.00 $14.71 06/12/2014 8.77% 1066.96%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $17.02 06/30/2014 8.70% 151.14%
FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) $23.53 $21.90 11/15/2014 7.43% 17.06%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ PF 05/12/2014 The Hillshire Brands Company (HSH) Cash Plus Stock $4.3 billion $47.46 $31.55 1,394,433 09/30/2014 50.43% 162.89%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $1.98 697,662 11/15/2014 26.26% 60.29%
+ CHTP 05/08/2014 H. Lundbeck A/S (N/A) Special Conditions $658 million $7.94 $6.56 878,010 09/30/2014 21.04% 67.95%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $3.89 $3.35 178,281 03/31/2014 15.98% 0.00%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $83.34 4,897,904 05/31/2015 13.99% 14.34%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $97.58 $88.16 1,655,204 09/30/2014 10.69% 34.51%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.93 $3.58 6,565 12/31/2014 9.84% 17.51%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $14.71 24,779 06/12/2014 8.77% 1066.96%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.02 131,505 06/30/2014 8.70% 151.14%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $23.53 $21.90 7,650 11/15/2014 7.43% 17.06%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $26.00 201,343 03/31/2015 7.00% 8.66%
+ OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) All Stock $81.13 million $4.25 $4.00 152,354 09/30/2014 6.33% 20.45%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $152.12 $143.66 925,475 12/31/2014 5.89% 10.48%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $6.37 $6.03 66,287 09/30/2014 5.71% 18.43%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $45.28 $42.85 113,994 12/31/2014 5.67% 10.10%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.30 2,283,199 12/31/2014 5.39% 9.60%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.69 4,719 03/31/2014 5.33% 0.00%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.50 33,029 09/30/2014 4.44% 14.36%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $6.95 30,952 03/31/2014 4.32% 0.00%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.55 $21.66 36,755 09/30/2014 4.10% 13.23%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.40 $9.99 1,521,231 12/31/2014 4.07% 7.25%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.94 $8.64 158,127 10/31/2014 3.42% 8.67%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $82.44 $79.95 344,744 09/30/2014 3.11% 10.05%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $42.60 $41.40 45,175 12/31/2014 2.90% 5.16%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.77 26,600 08/15/2014 2.89% 15.73%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $25.13 $24.45 424,851 12/31/2014 2.78% 4.94%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.42 219,971 06/30/2014 2.63% 45.74%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.84 1,731 09/30/2014 2.46% 7.95%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.32 33,196 12/31/2014 2.27% 4.05%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $13.00 $12.72 1,288,644 12/31/2014 2.20% 3.92%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.77 272,579 12/31/2014 1.95% 3.48%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 1,298 06/30/2014 1.69% 29.46%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.35 149,423 07/31/2014 1.50% 10.50%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $16.08 $15.89 3,358,466 12/31/2014 1.20% 2.13%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.28 $22.04 52,920 06/30/2014 1.09% 18.99%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $95.17 $94.24 1,500,439 06/30/2014 0.98% 17.06%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.46 2,374,402 01/31/2015 0.78% 1.20%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.84 248,374 09/30/2014 0.77% 2.48%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $32.49 $32.26 345,556 09/30/2014 0.71% 2.30%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $11.04 $10.97 16,706,640 12/31/2014 0.60% 1.07%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $47.74 $47.45 19,195 09/30/2014 0.60% 1.95%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) Special Conditions $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 7.76%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $22.08 $22.03 63,666 06/30/2014 0.23% 3.93%
+ 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%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.09 1,006,877 09/30/2014 0.14% 0.46%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.49 3,756,769 09/30/2014 0.11% 0.34%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) Special Conditions $323 million $9.97 $9.96 215,050 10/31/2014 0.10% 0.25%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 1.29%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.97 356,874 06/30/2014 0.05% 0.80%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $90.08 $90.07 148,153 06/30/2014 0.01% 0.12%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.29 52,012 06/30/2014 -0.21% -3.60%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.14 $20.19 66,984 09/30/2014 -0.23% -0.74%
+ 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 $5.49 78,426 09/30/2014 -0.73% -2.35%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.45 $34.70 666,683 12/31/2014 -0.73% -1.30%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.62 115,090 09/30/2014 -1.13% -3.65%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.07 $6.15 18,584 06/30/2014 -1.27% -22.08%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.09 $7.19 69,975 12/31/2014 -1.40% -2.49%
+ PDH 05/28/2014 Flint Hills Resources, LLC (N/A) All Cash $2.1 billion $14.00 $14.39 695,948 12/31/2014 -2.71% -4.83%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $20.03 71,987 09/30/2014 -5.14% -16.61%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) Special Conditions $1.1 billion $95.00 $105.25 78,159 09/30/2014 -9.74% -31.46%
+ 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 $23.85 44,007 12/31/2014 -18.24% -32.47%

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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