The Special Situation Report #23: 6/26 Roundup
Summary of the Week in Special Situations
I hope you enjoyed my report on Square Enix.
I am grateful to have built a global audience of 1,000+ investors in just a few months. Truth be told, I have a lot in the works for this website in terms of additional resources to add to your investor toolkit. But in the meantime, expect more of the same - including a new writeup next week (I’m heading back Stateside to cover a company in the healthcare sector).
On an unrelated note, I found this article from the Financial Times to be interesting - make of it what you will:
“Surge in end-of-quarter rallies driven by funds, research suggests” (Link)
Table of Contents:
Update on Developing M&A
Update on Shareholder Activism
Update on Other Special Situations
Announced M&A
Update on Developing M&A
Strategic Alternatives & Ongoing Situations
Kohl's (KSS) bidder Franchise Group (FRG) is considering lowering its offer to $50 per share (CNBC)
PBF Logistics (PBFX) gained as PBF Energy (PBF) disclosed it was mulling a takeover bid (Filing)
Spirit (SAVE) amended its merger agreement with Frontier (ULCC) (Press Release), shunning JetBlue’s (JBLU) $33.50 per share proposal (Press Release)
Toshiba (TOSYY) bidders are considering takeover offers as high as 7,000 yen (Reuters)
Rumors
Block (SQ) speculation it may attract an activist investor or takeover bid as its stock languishes (Axios Pro)
Celsius Holdings (CELH) may be a takeover target for Pepsi (PEP) (Seeking Alpha)
Occidental Petroleum (OXY) may be the next takeover target of Buffett’s Berkshire (BRK) as it continues to buy additional shares (Seeking Alpha)
Seagen (SGEN) merger talks with Merck (MRK) are reportedly picking up pace (WSJ)
Update on Shareholder Activism
Aerojet Rocketdyne (AJRD) CEO gets vote of confidence from ISS and Glass Lewis in proxy battle (Reuters)
CalAmp (CAMP) entered into cooperation agreement with B. Riley Asset Management (Press Release)
Catalyst Biosciences (CBIO) 8% shareholder JEC II engaging with management regarding returning cash to shareholders
Mercury Systems (MRCY) entered into cooperation agreements with Jana, Starboard (Press Release)
New Relic (NEWR) Jana Partners added to its stake (Filing)
Zendesk (ZEN) Jana pulled its proxy fight after ZEN announced a go-private transaction (Filing)
Update on Other Special Situations
Spin-Offs
Kellogg (K) announced spin-offs of its cereal and plant-based businesses, separating them from its snacking business (Press Release)
Seanergy Maritime (SHIP) announced a proposed spin-off (Press Release)
Volkswagen (VWAGY) is pushing ahead with Q4 Porsche IPO; eyes 2023 listing of its battery unit (Bloomberg)
Other
ODP Corporation (ODP) decided to keep all of its businesses together, scrapping earlier plans to separate its B2C and B2B businesses (Press Release)
Rogers (RCI) and Shaw (SJR) announced an agreement to divest Freedom Mobile to Quebecor (TSX: QBR) (Press Release)
Announced M&A
Target / Acquirer – Transaction Enterprise Value
Energy & Natural Resources
USA Truck (USAK) / DB Schenker – $435 million (Press Release)
U.S. Well Services (USWS) / ProFrac Holding (PFHC) – $93mm (Press Release, Presentation)
Financials
GrandSouth Bancorporation (GRRB) / First Bancorp (FBNC) – $181mm (Press Release)
Healthcare
Convey Health Solutions (CNVY) / TPG – $1.1bn (Press Release)
F-star Therapeutics (FST) / Sino Biopharmaceutical – $161mm (Press Release)
Radius Health (RDUS) / Gurnet Point & Patient Square – $890mm (Press Release)
Industrials
Ocean Bio-Chem (OBCI) / OneWater Marine (ONEW) – $125mm (Press Release)
RADA Electronic Industries (RADA) / Leonardo DRS (Press Release, Presentation)
Technology, Media & Telecommunications
Zendesk (ZEN) / Hellman & Friedman & Permira – $10.2bn (Press Release)
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