In a way that has previously created shareholder wealth for The Wallenberg family (considered the Rockefellers or Rothschilds of Sweden) via their holding company Investor AB (INVEB SS), one of the largest global appliances makers Electrolux AB (ELUXB SS) will be Spinning off its profitable commercial kitchen and laundry equipment business by February 2020. Provided no major surprises to ELUX’s end of January release of its demerger prospectus, we believe an entry position pre-Spin is warranted.
10 Jan 2020
With Danaher Corp. (DHR) looking to entice shareholders to exchange all or some of their common stock in DHR for shares in Envista Holdings (NVST) at a potential 7% discount to NVST’s share price as the company removes its 80.6% stake, these type of IPO-Exchange Offer transactions are infrequent (recently ZTS and ELAN). Click here for our full analysis as we look further into the performance of these type of deals and the potential opportunity ahead.
10 Dec 2019
For Swedish investment company Kinnevik AB (KINVB), this is the second stake distribution for the company in the last year or so as it distributes its entire 37.2% stake in Latin American and African telecom company, Millicom International Cellular SA (TIGO). However, due to stiff competition from larger peers operating in Latin America, KINV’s initial challenge to exit its stake in TIGO via an IPO as large shareholders trim their stake, we will continue to watch from the side lines.
27 Nov 2019
With Ingersoll-Rand’s (IR) earnings out tomorrow (Oct 29), we expect the management to give further clarity around its Q1 2020 Reverse Morris Trust transaction with listed Gardner Denver Holdings, Inc. (GDI). With our early analysis (assuming a 1:1 ratio), we’ve explored the pre-Spin opportunity of entering now, possibility of an S&P 500 listing for new GDI as well as our longer-term view in the pure-play Climate space.
28 Oct 2019
After a year and a half to structure the separation, British multinational financial services player Prudential Plc (PRU LN) has timed the demerger of its declining UK & Europe asset management, M&G Plc (MNG LN), ahead of the scheduled Brexit date on Oct 31. While there won’t be any index play due to MNG’s size, short-term negatives give pause for a pre-Spin entry but will monitor the Parent post-Spin due to its high-growth US, Asia and Africa businesses.
10 Oct 2019
In an effort to boost performance and focus on its core Healthcare and Enterprise AI businesses, Nuance Communications, Inc. (NUAN) is prepared to Spinoff its Automotive conversational AI business Cerence, Inc. (CRNC) on October 1. This is another step in a series of divestitures, which have all helped in lowering NUAN's leverage and making it a more nimble entity. Meanwhile, the Spinoff company's technicals indicate a short-term return opportunity, based on dynamics in similar prior break-ups.
25 Sep 2019