Winners of April contest announced:
The second iteration of the monthly contest to win $1,000 is over and I am happy to announce the winners.
A total of 6 special situation write-ups have been submitted for the April contest – and all of the transactions are still pending. Majority of member votes were again split between two opportunities – Reckon business sale (shared by Hugh) and General Growth Properties merger arbitrage (shared by Michael), with former taking a slight lead. Congratulations to both!
As during the last month price pool will be split $600 and $400 between the two. I will contact authors to arrange the payments.
May month contest to win $1,000 is now on, and we already have 4 submissions. So please share any interesting special situation trades you have up your sleeve.
April Winners:
<a href="https://www.specialsituationinvestments.com/2018/04/reckon-rkn-ax-business-sale-40-upside/">Reckon (RKN.AX) – Business Sale – 40% upside</a>
Business division is to be sold for a price equivalent to current enterprise value meaning that investors would be receiving the remaining business (half of current revenues) for free. Regulatory approval of the division sale seems to be the key obstacle as regulators already expressed preliminary skepticism on the transaction. Info from regulators is expected by the end of May / beginning of June.
<a href="https://www.specialsituationinvestments.com/2018/04/general-growth-properties-ggp-merger-arbitrage-7-6-upside/">General Growth Properties (GGP) – Merger Arbitrage – 7.6% upside</a>
Stock and cash merger arbitrage between General Growth Properties and Brookfield Property Partners with 7.5% spread at the time of posting. BPY already owns 34% of GGP and is buying the remaining stake. The spread still stands at 7%.