Split-Offs proved to be very lucrative in generating low risk arbitrage returns. Just last week yet another split-off (ECL/APY) closed successfully with $2,100 ‘riskless’ return for hedged trades (c. +11%), while at at the same time unhedged positions delivered $10,000 (c. +50%-70%) in a month. The difference in pay-offs is clearly very material; however, higher returns seemingly come with higher risks (exposure to share price fluctuations).
Current Price – $8.66
Potential Recovery – $9.23-$9.65
Upside – $100 for odd-lots if priced at the upper limit
Expiration Date – 19th of December 2017
Current Price – DHR $87.26, NTCT $41.27
Offer Price – $107.53 stock of NTCT for $100 stock of DHR (subject to upper limit)
Upside – 5.3% or $450 for Odd Lot holders
Expiration date – July 8, 2015
Current Price – $6.50
Offer Price – $6.50 – $6.70
Upside – 3.1% or $20 for Odd Lot holders (if upper pricing is used)
Downside – $0
Expiration date – August 6, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Trading Strategy:
Buy 99 shares of GSIT below $6.5 and tender all your shares before August 6, 2014.
Summary:
GSI Technology invites its stockholders to tender shares of its common stock, par value $0.001
Current Price – $19.6
Offer Price – $20.5
Upside – 4.6% or $89 for Odd Lot holders
Expiration date – July 2, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Trading Strategy:
Buy 99 shares of UDF below $20.5 and tender all your shares before July 2, 2014.
Summary:
United Development Funding IV, a Maryland real estate investment trust, is offering to purchase for cash up to 1,707,317 common shares of beneficial interest, par value
Current Price – $1.0
Offer Price – $1.2
Upside – 20% or $200 for Odd Lot holders
Expiration date – not announced yet
Trading Strategy:
Buy 999 shares of HKFI and wait for reverse-split after the shareholder meeting.
Summary:
After careful consideration, our Board of Directors has concluded that the costs associated with being a public reporting company in the U.S. are not justified by the benefits. The primary purpose of the going private transaction is to reduce the number
Current Price – $8.51
Offer Price – $10.00
Upside – 17.5% or $148 for Odd Lot holders
Expiration date – May 28, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Summary:
Global Sources Ltd., a Bermuda company, is offering to purchase for cash up to 5,000,000 shares of its common shares. On the terms and subject to the conditions of the Offer, Global Sources will pay $10.00 per share, net to the seller in cash.
The 5,000,000
Current Price – $10.55
Offer Price – $10.75
Upside – 1.9% or $20 for Odd Lot holders
Expiration date – May 12, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Trading Strategy:
Buy 99 shares of NYRT below $10.75 and tender all your shares before May 12, 2014.
Summary:
New York REIT, Inc., a Maryland corporation that qualifies as a real estate investment trust for U.S. federal income tax purposes, invites our stockholders to tender
Current Price – $10.12
Offer Price – $11.00
Upside – 8.7% or $87 for Odd Lot holders
Expiration date – May 2, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Trading Strategy:
Buy 99 shares of HCT below $11 and tender all your shares before May 2, 2014.
Summary:
American Realty Capital Healthcare Trust, Inc., invites our stockholders to tender up to 13,636,364 shares of our common stock, par value $0.01 per share, for
Current Price – $16.70
Offer Price – $16.50 – $17.50
Upside – 4.8% or $79 for Odd Lot holders
Downside – 1.2% or -$20 for Odd Lot holders
Expiration date – April 23, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Summary:
Steel Partners Holdings L.P., a Delaware limited partnership is offering to purchase for cash, up to $49 million in value of its common units, no par value, upon the terms and subject
Current Price – $17.30
Offer Price – $16.5 – $18.00
Upside – 4% or $69 for Odd Lot holders
Downside – 4.6% or -$79 for Odd Lot holders
Expiration date – April 2, 2014
Odd Lot holders (less than 100 shares) are not subject to proration
Summary:
Genpact Limited, a Bermuda Company, invites our shareholders to tender up to $300 million in value of our common shares, par value $0.01 per share, for purchase by us at a price not
Current Price – $1.17
Offer Price – $1.5/share + $100
Upside – 28% or $33 for Odd Lot holders
Expiration date – Mar 12, 2013
Odd Lot holders (less than 100 shares) are not subject to proration. Had to be shareholder of record as of 31ts Jan 2013.
Summary:
is offering to purchase all of its common shares held by holders of 99 or fewer shares who owned such shares as of the close of business on January 31, 2013