Spinoff Report
ELUXB SS: Wallenberg's Successful Track Record Strengthens Upcoming Split
The Wallenberg family's successful Spinoff at Atlas Copco AB (ATCOA SS) of Epiroc AB (EPIA SS) outperformed the OMX Stockholm Index return of +11% with returns of +28% and +27%, respectively. Now, only a year and a half later, the family is pushing for the break-up of their ninth-largest holding, Electrolux AB (ELUXB SS) and its Professional segment. We believe there are factors at play in this upcoming split that indicate similar success - read on for our thoughts.

  • Expected Market Caps: ELUXB SS (Parent, Ex-Spin) SEK 57bn ($6.0bn) / Electrolux Professional (Spinoff) SEK 20bn ($2.1bn)
  • Wallenberg Family's History of Spins Show Positive Returns / Previous Spins Include ATCOA & EPIA and ELUXB & HUSQB
  • Spinoff's New Chairman is Current CEO of HUSQB / +91% Return During His Tenure (Outperforming OMX's +41%)
  • High-Margin Professional Business May List Debt-Free & Likely Pay Dividend (~3% Yield) / Index Play Involved
  • 1:1 Distribution Ratio / EGM Scheduled for February 21, 2020 / Spinoff Expected Q1 2020
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