Takeover deals can be a signal of positive market sentiment, indicating that the acquiring company is confident in its growth prospects and is willing to invest in expanding its market share. Such deals often lead to an increase in stock prices as they indicate potential value creation and synergies for the acquiring company. Takeover deals may provide an opportunity for investors to capitalize on market inefficiencies and earn profits through arbitrage strategies, such as buying the target company’s stock at a discount to the offer price and profiting from the price convergence upon deal completion.
Here are three takeover targets for the week –
Western Asset Mortgage Capital Corporation – SYM: WMC
Recent Price: $9.72
Takeover Action: AG Mortgage Investment Trust, Inc. (MITT) announced that it submitted a proposal to the Board of Directors of Western Asset Mortgage Capital Corporation (WMC) to acquire WMC for a fixed exchange ratio, representing an implied price of $9.88 per share, consisting of a stock consideration of $8.90 per share and cash consideration of $0.98 per share.
Description: Western Asset Mortgage Capital Corporation operates as a real estate investment trust. It invests in, acquires, and manages a portfolio of assets with a focus on residential real estate related investments, including non-qualified mortgage loans, non-agency residential mortgage-backed securities (RMBS), and other related investments.
Startek, Inc. – SYM: SRT
Recent Price: $3.13
Takeover Action: On July 18, 2023, CSP EAF II GP Limited, as general partner of CSP Fund II LP, an entity affiliated with the CSP Management submitted an offer letter to the Startek board of directors to acquire all of the outstanding shares of Common Stock of the Startek (SRT) not already beneficially owned by CSP Management at a price per share of $3.80 in cash.
Description: StarTek, Inc., a business process outsourcing company, provides customer experience, digital transformation, and technology services in various markets. The company primarily offers customer engagement, omnichannel engagement, social media, customer intelligence analytics, work from home, and back-office services under the Startek and Aegis brands. It also offers Startek cloud, a hybrid omni-cloud platform integrated with artificial intelligence capabilities, which enables agents to work in remote and home-based roles for increased business agility and continuity. The company serves telecom, e-commerce and consumer, financial and business services, cable and media, travel and hospitality, technology, education and healthcare, energy, and other industries in the Americas, India, Sri Lanka, Malaysia, South Africa, Australia, and internationally. StarTek, Inc. was founded in 1987 and is headquartered in Denver, Colorado. Startek, Inc. operates as a subsidiary of CSP Alpha Holdings Pte. Ltd.
Thorne HealthTech, Inc. – SYM: THRN
Recent Price: $6.00
Takeover Action: According to Reuters, Thorne HealthTech (THRN) a provider of at-home health tests and nutritional supplements, is exploring a sale.
Description: Thorne HealthTech, Inc., a science-driven wellness company, provides solutions and personalized approaches to health and wellness in the United States and internationally. It offers various health tests, such as sleep, stress, weight management, gut health, heavy metals, biological age, and other health tests that generate molecular portraits for its customers, as well as develops nutritional supplements and offers wellness education solutions. The company uses the Onegevity platform to map, integrate, and understand the biological features that describe the state of an individual’s health, as well as provide actionable insights and personalized data, products, and services that help individuals to take a proactive approach to enhance and maintain their health. It primarily serves healthcare professionals, professional athletes, and professional sports and Olympic teams. Thorne HealthTech, Inc. was founded in 1984 and is headquartered in New York, New York.