Friday, June 15, 2018

COMX Buyout

A buyout announcement came out this morning for COMX to be acquired by Zonal Hospitality Systems for 7.46 GPB = $9.91.  Shares are available now under $9 for anyone wanting to play the arb game.  I picked up more shares right at market open.

I first wrote about COMX in Apr 2016 with the stock at $1.60 and gave it a $6 value.  I gave COMX a $10 value in my most recent post in Feb 2018, what a guess!

I don't see much risk to the deal going through but there is no date given.  Some quotes from the press release:
The board of directors of Comtrex has unanimously approved the transaction and has unanimously determined, subject to customary fiduciary outs, to recommend that Comtrex shareholders vote in favor of the transaction.

Holders of more than 50 percent of the outstanding shares of Comtrex common stock have entered into voting agreements with Zonal whereby they have agreed to vote their shares in favor of the transaction.
Patience wins


--Dan
disclosure: long COMX

7 comments:

  1. I got a response from the CEO on timing: "We will be mailing proxy material within the next three to four weeks in anticipation of a shareholder meeting at the end of July."

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  2. I feel they should ask for money, but I guess senior management is starting to get old and they want a safe retirement...

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  3. Do you know how to obtain the proxy materials? Also are you aware of any news? The spread widened a bit. Thanks, Maarten

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  4. Nice call Dan. Any sign of that proxy yet?

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  5. sorry guys. I was too late on noticing these comments. Turns out the spread widened because the company stuck some money in escrow for two years. So arb turned out poorly.

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  6. Hi Dan, thanks for sharing. Seems like there is an initial payment of $8.02/share and another $1.58 might be coming in two years time. Any idea when the initial payment will be paid?

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    1. You should have it already. I got mine Aug 8

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