Mergers and Acquisitions

Trade the pink sheets? Small bank M&A arbitrage, 5% spread.

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“combined company will have approximately $1.7 billion in assets, $1.3 billion in loans, $1.5 billion in deposits and operate 29 branches throughout King, Pierce, Snohomish and Thurston Counties” [1]
Trade the pink sheets? Here’s an M&A arbitrage opp announced today.  Sound Credit Union is taking over Washington Bancorp, Inc. (OTC Pink: WGTB).  WGTB owns the Bank of Washington.

Deal is $6.40 cash per share… current market is $6.07/sh.  If you can find some liquidity in this OTC stock, you are looking at around a 5% return.  Timing of deal is mentioned to close in Q1 2019 and will be updating shareholders with more info later in the Q4 this year.

“The transaction has been unanimously approved by the boards of directors of both institutions and is subject to regulatory approval, approval by the shareholders of Washington Bancorp, Inc. and other customary approvals” [1]