Back in Spreadtrum Communications
I have a feeling Spreadtrum Communications (Ticker: SPRD) is close to obtaining the required regulatory approvals in the PRC so the deal can close. I’m playing this by selling the January 2015 $30 Puts and collecting the premium. This is my only merger arb / special situations play at the moment. I don’t see anything interesting right now so I’ll just patiently wait for the right opportunity to show up.
posted by Money Turtle @ 9:57 PM
7 comments
7 Comments:
what price did you get for the puts?
I sold the Puts for $0.50.
sounds like a good price
How close do you think they are to obtaining the required regulatory approvals in the PRC?
I think it should get done by the end of November based on the submission to the regulatory agency in late August. This deal will eventually get the ok, but it could drag out cause they do take their time.
Hi Money Turtle,
I noticed another Chinese Company - Yongye, Symbol:YONG that is scheduled to go private. Curent price is $6.28, with a buyout price of $6.69. Yielding approximately 6.5% There is an intersting article on Seeking Alpha on this:
http://seekingalpha.com/article/1778382-yongye-unique-risk-arbitrage-opportunity-for-an-undervalued-firm?source=yahoo
The article indicates that the risk is low, since if it does got through the company may be worth even more than buyout price.
Do you have any thoughts on this?
Thanks
I've been keeping an eye on YONG. Yes, the spread is attractive. There is a lot of talk from investors regarding a bump in price, but I think that is unlikely.
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