Frequently Asked Questions

Below you will find a number of special situation examples that have been published on the site. Some of these were covered by me, others were shared by the members. For a full track record, you can browse through all past ideas on the site.

 

Low & Bonar (LWB.L) +35% in 1.5 months
Freudenberg signed an agreement to acquire technical textiles manufacturer Low & Bonar PLC for £0.155/share in cash. Approval from the target company shareholders had already been received, while consent from the EU regulators seemed likely to be given due to a small size of the transaction. Spread stood at 40% at the time of the write-up and widened even more (to 200%+) during market sell-off. The main risk was that Freudenberg could've used the COVID-19 situation (and its impact on LWB's business) to renegotiate the terms or walk away from the transaction. Nonetheless, EU regulators gave their consent earlier than expected, which has likely limited the possibilities for Freudenberg's to walk away and the merger closed shortly after that.

 

Zyla Life (ZCOR) +26% in one month
Zyla Life agreed to be acquired by Assertio Pharma for 2.5 ASRT per each ZCOR share (two nano-cap specialty pharma companies). Approval was required from shareholders of both parties, while the support of 51% of ZCOR shareholders was already in the pocket. The main uncertainty lied around the ASRT shareholders vote, although 6 major Assertio shareholders (owned 40%) seemed quite likely to vote in favor. Shareholders' voting went as expected and the transaction was finalized shortly after.

Zyla Life agreed to be acquired by Assertio Pharma for 2.5 ASRT per each ZCOR share (two nano-cap specialty pharma companies). Approval was required from shareholders of both parties, while the support of 51% of ZCOR shareholders was already in the pocket. The main uncertainty lied around the ASRT shareholders vote, although 6 major Assertio shareholders (owned 40%) seemed quite likely to vote in favor. Shareholders' voting went as expected and the transaction was finalized shortly after.

Zyla Life

Zyla Life agreed to be acquired by Assertio Pharma for 2.5 ASRT per each ZCOR share (two nano-cap specialty pharma companies). Approval was required from shareholders of both parties, while the support of 51% of ZCOR shareholders was already in the pocket. The main uncertainty lied around the ASRT shareholders vote, although 6 major Assertio shareholders (owned 40%) seemed quite likely to vote in favor. Shareholders' voting went as expected and the transaction was finalized shortly after.

  • Freudenberg signed an agreement to acquire technical textiles manufacturer e the terms or walk away from the transaction. Nonetheless, EU regulators gave their consent earlier than expected, which has likely limited the possibilities for Freudenberg's to walk away and the merger closed shortly after that.
  • Low & Bonar PLC for £0.155/share in cash. Approval from the target company sh
  • areholders had already been received, while consent from the EU regulators seem s seemed likely to be given due to a small size of the transaction. Spread stood at 40% at the time of the write-up and widened even more (to 200%+) during market sell-off. The main risk was that Freudenberg could've used the COVID-19 situation (and its impact on LWB's business) to renegotiate the terms or walk away from the transaction. Nonetheless, EU regulators gave their consent earlier than expected, which has likely limited the possibilities for Freudenberg's to w
  • ed likely to be given due to a small size of the transaction. Spread stood at 40% at t
  • he time of the write-up and widened even more (to 200%+) during market sell-off. The main risk was that Freudenberg could've used the COVID-19 situation (and its impact on LWB's bus
2020
Ticker Date published Type Return Annual IRR
TBD 15-Oct-20 Potential Acquisition Target TBD TBD
TBD 09-Oct-20 AUM Growth TBD TBD
TBD 06-Oct-20 Spin-Off TBD TBD
AMCX 06-Oct-20 Tender Offer -2.0% -24%
NTP 17-Sep-20 Activist Control -30.0% -240%
MA1.AX 09-Sep-20 NAV Discount Elimination 9.0% 108%
TBD 08-Sep-20 Warrant Exchange TBD TBD
TBD 26-Aug-20 Preferred Equity Elimination TBD TBD
TBD 20-Aug-20 CVR TBD TBD
TBD 17-Aug-20 Merger Arbitrage TBD TBD
INP.V 17-Aug-20 Merger Arbitrage 5.0% 120%
GHG.L 04-Aug-20 Squeeze Out 10.0% 120%
TBD 25-Jul-20 Discount Mean Reversion TBD TBD
WSTL 13-Jul-20 Reverse Split 41.0% 164%
PSSL.L 08-Jul-20 Merger Arbitrage 15.0% 104%
NKLA 15-Jun-20 Capital Structure Arbitrage 36.0% 432%
MET.NZ 08-Jun-20 Merger Arbitrage 28.0% 224%
SKYS 08-Jun-20 Merger Arbitrage 100.0% 1200%
PDLI 05-Jun-20 Liquidation 0.0% 0%
ECL 08-May-20 Split-Off 11.0% 132%
TCBI 23-May-20 Merger Arbitrage -16.0% -192%
0494.HK 24-Apr-20 Merger Arbitrage 13.0% 156%
TMKS.L 24-Apr-20 Going Private 10.0% 40%
ZCOR 22-Apr-20 Merger Arbitrage 26.0% 312%
TBD 22-Apr-20 Merger Arbitrage TBD TBD
IAC 08-Apr-20 NAV Discount Elimination 5.0% 20%
LSXMK 27-Mar-20 Merger Arbitrage -3.0% -36%
NIBC.AS 25-Mar-20 Merger Arbitrage 3.0% 6%
SORL 10-Mar-20 Merger Arbitrage 14.0% 168%
IOTS 09-Mar-20 Merger Arbitrage 10.0% 80%
SDI 05-Mar-20 Merger Arbitrage 4.0% 48%
LWB.L 05-Mar-20 Merger Arbitrage 35.0% 280%
2858. HK 13-Feb-20 Merger Arbitrage 20.0% 60%
ALT.PA 12-Feb-20 Merger Arbitrage -1.0% -8%
S 12-Feb-20 Merger Renegotiation -15.0% -90%
MCK 11-Feb-20 Split-Off 7.5% 90%
BME.MC 27-Jan-20 Bidding War -4.0% -24%
ADL.DE 14-Jan-20 Merger Arbitrage -3.0% -18%
PVCS.L 31-Jan-20 Liquidation -12.0% -25%