Spinoff Report
GNC & UMG AU: Strong First Day of Trading for SmallCap Aussie Split
Today marked the first day of regular trading for Graincorp Ltd (GNC AU) and its Spinoff United Malt Group Ltd (UMG AU) after trading on a when-issued basis since March 26. We believe this separation paves the way to higher valuations for either company as they seek being taken over by larger players, though until that comes through they will continue to operate as leaders in their respective industries. Read on for more details on the value created on their first regular day of trading.

  • 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 / Separation Simplifies Process
  • First Day of Regular Trading April 2, 2020 / +12% Return Vs. ASX Index's -2%
  • UMG AU Trading Toward Bull Case Target Price / UMG AU is a Current Spinoff Model Portfolio Holding
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