Full Analysis
Spinoff Report
Australian Break-Up Simplifies Takeover Opportunity, Enters MP
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.

  • GNC Chairman & CEO Both Headed to Lead UMG / Outside Leadership for Parent Post-Spin
  • Previous Takeover Bid & Friendly Activist Drive GNC to Separate Malts Segment
  • UMG Avoids Commodity Classification Once Separated from GNC's Operations
  • Both Entities are Potential Takeover Targets / Significant Upside on UMG
  • Spinoff Completes April 2, 2020 / UMG AU Enters the Spinoff MP with a +4% Weighting at the End of Tomorrow's (March 27) VWAP
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