Monthly Archives: December 2016

  

Transalta (TA-PD.TO) – Exchange Offer – 2.7% upside

Arbitrage Trade

Upside – 2.7%

Expiration Date - Q1 2017

This idea was suggested to me by one reader of the site – it’s an arbitrage trade in Canadian preferred shares. Upside is tiny, but the deal itself is interesting – so I decided to write it up. I have a small position mainly to track how this transaction plays out.

  

OCI Partners (OCIP) – Merger Arbitrage – 5.3% upside

Current Price –$7.5

Offer Price - $7.9

Upside – 5.3%

Expiration Date - TBD (expected Q1 2017)

This is a merger arbitrage situation, where current acquisition proposal understates the value of the company and the risk of deal getting cancelled is low. The spread is at 5.3%.

 

Global Eagle Entertainment (ENT) – Expected Tender Offer – 80% upside

Current Price –$6.2

Offer Price - $11

Upside – 80%

Expiration Date - TBD (likely H2 2017)

Global Eagle Entertainment provides satellite based entertainment and connectivity services for aviation and maritime industries (think wifi on the plane or Gogo). Company presentation is here. Its systems are installed in 750 aircraft currently and the company has contracts for further expansion. Revenues are growing at 30%+ annually, but ENT is still loss making and burning cash. I am no expert in technology investments and find these