Welcome to the Save Money, Live Better issue of M&A Daily
Wal-Mart (NYSE:WMT) and JD.com (NASDAQ:JD) are forming an alliance, in which WMT will get 5% of JD's equity and JD will get the Yihaodian marketplace platform assets. Wal-Mart worked with Morgan Stanley (NYSE:MS) on the deal. The alliance will compete head-to-head with Alibaba (NYSE:BABA) in its direct-to-consumer business.
WMT is also welcoming Noble Roman's (OTCQB:NROM) first franchise restaurant inside a Wal-Mart store. If this one goes well, it is likely they will roll out Noble Roman's at additional Wal-Mart locations. Noble Roman's is worth at least $1.50 per share to a potential buyer, two and a half times today's stock price, due to its strong cash flow generation.
Meet a genuine American folk hero cut from the homespun cloth of America's heartland: Sam Walton, who parlayed a single dime store in a hardscrabble cotton town into Walmart, the largest retailer in the world. The undisputed merchant king of the late twentieth century, Sam never lost the common touch.
American Science and Engineering
The Ingram Micro (NYSE:IM) shareholder vote is today for its acquisition by Tianjin Tianhai. The $3.94 arb spread offers a 21% IRR if the deal closes by year end. More to come in future editions of M&A Daily...
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Disclosure: I am/we are long NROM, IM, PNX, CVC.
Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.