Merger Arbitrage Mondays – July 25, 2016

Bookmark and Share

July 24, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with six new deals announced and four 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 2016 122
Total Number of Deals Not Completed in 2016 10
Total Number of Pending Deals
Cash Deals 56
Stock Deals 17
Stock & Cash Deals 14
Special Conditions 9
Total Number of Pending Deals 96
Total Deal Size $950.95 billion

New Deals:

  1. The acquisition of ARM Holdings (ARMH) by SoftBank Group for $32 billion. Under the terms of the acquisition, each ARM Shareholder will be entitled to receive 1,700 pence in cash for each ARM share. Each ARM ADR represents three underlying ARM shares.
  2. The acquisition of Golden Enterprises (GLDC) by Utz Quality Foods for $135 million or $12.00 per share in cash.
  3. The acquisition of Joy Global (JOY) by Komatsu America for $3.7 billion or $28.30 per share in cash.
  4. The acquisition of Relypsa (RLYP) by Galenica Group for $1.53 billion or $32.00 per share in cash.
  5. The acquisition of Yadkin Financial Corporation (YDKN) by F.N.B. Corporation (FNB) for $1.4 billion in an all stock deal. Upon completion of the merger, shareholders of Yadkin Financial will receive 2.16 shares of FNB common stock for each common share of Yadkin.
  6. The acquisition of InterOil Corporation (IOC) by Exxon Mobil Corporation (XOM) for $2.5 billion or $45.00 per share. The number of ExxonMobil shares paid per share of InterOil will be calculated based on the volume weighted average price (VWAP) of ExxonMobil shares over a measuring period of 10 days ending shortly before the closing date. A Contingent Resource Payment (CRP), which will be an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a maximum of 10 tcfe. The CRP will not be transferrable and will not be listed on any exchange. We are treating this as a special conditions deal with an estimated closing price of $52.07 consisting of $45 of ExxonMobil shares and $7.07 of the CRP payment with the realization that both the share portion and the CRP payment could be higher or lower at closing.

Deal Updates:

  1. On July 20, 2016, shareholders of The Dow Chemical (DOW) and DuPont (DD) approved the merger of equals between the two companies.
  2. On July 21, 2016, InterOil Corporation’s Board of Directors determined that ExxonMobil’s (XOM) offer to acquire InterOil (IOCconstitutes a “Superior Proposal,” as defined in InterOil’s arrangement agreement with Oil Search Limited and InterOil has provided notice of such determination to Oil Search.
  3. On July 22, 2016, The Justice Department filed lawsuits to block two megadeals in the health insurance industry, saying the deals would harm competition across the country. The DOJ filed suits to block the mergers of Anthem (ANTM) and Cigna (CI)  as well as Aetna (AET) and Humana (HUM).

Closed Deals:

  1. The acquisition of Laporte Bancorp (LPSB) by Horizon Bancorp (HBNC) on July 18, 2016. It took 130 days for this deal to be completed.
  2. The acquisition of Niska Gas Storage Partners (NKA) by Brookfield Infrastructure on July 19, 2016. It took 401 days for this deal to be completed.
  3. The acquisition of Biotie Therapies (BITI) by Acorda Therapeutics (ACOR) on July 19, 2016. It took 182 days for this deal to be completed.
  4. The acquisition of C1 Financial (BNK) by Bank of the Ozarks (OZRK) on July 21, 2016. It took 255 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

RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $6.82 12/31/2016 31.96% 73.38%
HUM 07/03/2015 Aetna Inc. (AET) $225.89 $176.05 12/31/2016 28.31% 64.98%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $43.96 12/31/2016 27.39% 62.87%
CI 07/24/2015 Anthem, Inc. (ANTM) $177.04 $146.00 12/31/2016 21.26% 48.81%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.30 09/30/2016 21.21% 115.56%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.26 12/31/2016 13.54% 31.09%
AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) $6.66 $5.935 12/31/2016 12.22% 28.04%
APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) $10.00 $8.96 08/31/2016 11.61% 114.50%
CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $32.43 09/30/2016 11.01% 59.97%
DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) $6.70 $6.16 12/31/2016 8.77% 20.12%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $6.82 10,765,931 12/31/2016 31.96% 73.38%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.89 $176.05 5,476,568 12/31/2016 28.31% 64.98%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $43.96 360,229 12/31/2016 27.39% 62.87%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $177.04 $146.00 3,964,647 12/31/2016 21.26% 48.81%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.30 52,029 09/30/2016 21.21% 115.56%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.26 2,399,263 12/31/2016 13.54% 31.09%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $5.935 11,647 12/31/2016 12.22% 28.04%
+ APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $10.00 $8.96 396,011 08/31/2016 11.61% 114.50%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.43 2,133,803 09/30/2016 11.01% 59.97%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.16 184,437 12/31/2016 8.77% 20.12%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Cash $1.4 billion $27.35 $25.40 1,842,431 03/31/2017 7.68% 11.25%
+ LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $37.78 272,555 12/31/2016 7.20% 16.53%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $31.38 993,003 06/30/2016 6.76% 0.00%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $56.23 907,396 03/31/2017 6.70% 9.83%
+ IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.19 1,257,358 09/30/2016 5.85% 31.90%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.49 $13.72 67,570 08/15/2016 5.58% 96.98%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $107.03 454,980 03/31/2017 5.58% 8.18%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.901 287,289 03/31/2017 5.44% 7.97%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.70 600 12/31/2016 5.42% 12.44%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.31 $30.74 659,875 12/31/2016 5.12% 11.76%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.10 133,340 08/15/2016 4.84% 84.10%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.51 30,547 09/30/2016 4.38% 23.87%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.49 41,800 06/30/2016 3.78% 0.00%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.31 $33.18 25,238 12/31/2016 3.40% 7.81%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $84.34 $81.70 1,608,842 12/31/2016 3.23% 7.42%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $189.95 549,540 12/31/2016 3.19% 7.31%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $77.52 844,260 07/31/2016 2.59% 157.73%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.74 $46.59 639,066 12/31/2016 2.47% 5.67%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.93 8,550 09/30/2016 2.43% 13.26%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.49 $21.96 30,280 01/31/2017 2.39% 4.60%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.71 327,087 12/31/2016 2.12% 4.86%
+ ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.03 1,729,112 12/31/2016 1.95% 4.48%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.34 $1.31 46,403 09/30/2016 1.93% 10.49%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.89 65,532 12/31/2016 1.91% 4.39%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.50 397,069 09/30/2016 1.90% 10.38%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.27 $15.00 513,088 12/31/2016 1.80% 4.13%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.42 $15.16 1,738,779 12/31/2016 1.74% 3.99%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.46 1,709,760 12/31/2016 1.66% 3.82%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $26.48 $26.05 1,718,922 12/31/2016 1.66% 3.81%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.54 $12.36 9,269 12/31/2016 1.48% 3.40%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.06 991,290 09/30/2016 1.46% 7.97%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.44 3,980,185 12/31/2016 1.46% 3.35%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.73 $18.47 4,288 03/31/2017 1.39% 2.04%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.81 1,127,378 12/31/2016 1.38% 3.16%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.73 710,273 07/21/2016 1.37% 0.00%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.22 362,161 12/31/2016 1.35% 3.10%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $56.26 136,718 01/01/2017 1.32% 3.00%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $19.08 $18.84 403 12/31/2016 1.30% 2.98%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $77.03 $76.06 443,130 06/30/2016 1.27% 0.00%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.95 11,923,182 06/30/2017 1.25% 1.34%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.31 161,593 01/31/2017 1.12% 2.15%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.04 498,844 12/31/2016 1.10% 2.53%
+ GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.87 80,724 12/31/2016 1.10% 2.51%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.77 264,379 09/30/2016 0.93% 5.06%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.39 2,817,150 09/30/2016 0.89% 4.84%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $37.77 $37.45 3,845 12/31/2016 0.85% 1.94%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.82 372,747 10/15/2016 0.73% 3.23%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.76 432,277 03/31/2017 0.71% 1.04%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.91 243,793 12/31/2016 0.65% 1.49%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $20.96 $20.85 672,927 09/30/2016 0.54% 2.92%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.76 177,591 10/28/2016 0.42% 1.60%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $35.12 662,840 09/30/2016 0.37% 2.02%
+ QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $15.23 $15.18 650,980 09/30/2016 0.35% 1.92%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $45.91 $45.76 5,393,944 09/30/2016 0.33% 1.78%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.75 15,998 11/15/2016 0.31% 0.99%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.69 847,283 03/31/2017 0.28% 0.41%
+ CERE 06/17/2016 Land O’Lakes (N/A) All Cash $17.2 million $0.40 $0.399 132,494 09/30/2016 0.25% 1.37%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.86 272,753 12/31/2016 0.23% 0.54%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $18.72 $18.68 7,103 03/31/2017 0.22% 0.33%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.49 7,285 07/31/2016 0.22% 13.55%
+ RLOC 06/27/2016 Gannett Co., Inc. (GCI) All Cash $156 million $4.60 $4.59 104,380 09/30/2016 0.22% 1.19%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $382.2 million $15.50 $15.47 38,289 09/30/2016 0.19% 1.06%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.93 $17.90 328,366 12/31/2016 0.17% 0.38%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.20 1,667,474 12/31/2016 0.17% 0.38%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.995 32,095 06/30/2016 0.13% 0.00%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.72 587,811 06/30/2016 0.11% 0.00%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $20.98 626,039 09/30/2016 0.10% 0.52%
+ SQI 05/31/2016 affiliates of Accel-KKR (N/A) All Cash $509 million $17.75 $17.74 443,359 09/30/2016 0.06% 0.31%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.99 1,441,088 12/31/2016 0.02% 0.06%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.33 $10.33 2,380,819 09/30/2016 0.01% 0.04%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $35.05 191,885 09/30/2016 0.00% 0.00%
+ RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $32.07 13,218,946 09/30/2016 -0.22% -1.19%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.17 $11.20 370,293 07/29/2016 -0.27% -24.45%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $37.12 27,016 12/31/2016 -0.32% -0.74%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $86.36 26,893 08/31/2016 -0.42% -4.11%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $25.64 $25.78 80,736 09/30/2016 -0.56% -3.03%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.17 487,518 12/31/2016 -0.68% -1.55%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $28.43 $28.63 1,066,464 12/31/2016 -0.71% -1.62%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.15 $16.36 480,286 05/31/2017 -1.26% -1.49%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.02 $13.26 11,339 06/30/2016 -1.77% 25.91%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.76 359,517 12/15/2016 -3.49% -8.91%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $31.13 221,657 12/31/2016 -3.63% -8.33%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $177 million $5.75 $5.97 200,760 09/30/2016 -3.69% -20.08%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.41 $1.46 160,246 12/31/2016 -3.76% -8.64%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.56 $1.62 187,369 12/31/2016 -3.99% -9.17%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.64 $10.98 184,910 12/31/2016 -57.73% -132.52%

Disclaimer: Clients of Signal Partners, LLC  and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter