Following a complete company takeover offer and a suggestion from a "friendly activist" to break-up the Grains and Malts businesses, Graincorp Ltd's (GNC AU) strategic review concluded with the Spinoff of its malts business into United Malt Group Ltd (UMG AU), to separate next week (April 2, 2020). We believe this Spinoff simplifies any attempt to have the independent entities acquired by larger players in their space and provides the management control over the value in that potential takeover.
26 Mar 2020
The ongoing Coronavirus outbreak has led to the suspension of the current NBA season and the broad implementation of curfews around the country on non-essential travel, resulting in the selloff in the major indices. The Madison Square Garden Co. (MSG) has decreased by -34.3% YTD compared to the S&P Total Market Cap Index return of -27.6% to date, making the upcoming Spinoff of the Entertainment business even more attractive at these lower levels.
17 Mar 2020
We entered Arconic, Inc. (ARNC) in May 2019 on the back of major insider buying patterns (we booked partial profit of +18% within three months), and now the long-awaited Spinoff of Arconic Corp. (ARNC, Spin) is upon us, scheduled for April 3, 2020. ARNC (Parent) is renaming to Howmet Aerospace, Inc. (HWM), and with many different elements involved, our analysis lays out how best to play this aerospace/aluminum split.
17 Mar 2020
In-line with the previous successful Spinoff of its commercial and residential security business Allegion Plc (ALLE, which has more than doubled its share price since listing), Ingersoll-Rand Plc (IR) is prepared for its Reverse Morris Trust (RMT) transaction of its Industrials business to be merged with listed Gardner Denver Holdings, Inc. (GDI), which will become a global leader in mission-critical flow creation and industrial technologies. Click in for more on this upcoming RMT.
20 Feb 2020
As the entire market awaits this upcoming April 2020 3-way break-up of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS), the Spins may see short-term pressure due to the negative sentiment surrounding the amount of debt received. However, with the potential for mispricing in the when-issued market, we’re taking a small stake in United Technologies Corp. (UTX) to receive all three new companies in order to play this iconic split. Click here for the full analysis.
19 Feb 2020
After a series of successful separations which have maximized value (at a CAGR of 17% compared to the S&P 500’s +10% to date), media and internet holding company IAC/InterActiveCorp (IAC) is back again with another Spinoff of its most valuable asset, Match Group, Inc. (MTCH). The distribution will help reduce IAC's conglomerate discount and clean its balance sheet, while MTCH will benefit from an increased free float, the elimination of its dual-class structure, and potential index inclusion.
18 Feb 2020