Corporate Spinoff Monthly Roundup – April 2019

Another month is almost in the books so lets recap the recent spinoff activity and also take a look at what spinoffs the next month will bring:

Spinoffs Completed Prior Month

Some big spinoffs in April.

  1. April 1st – after several years of merger integration work, DowDupont (DWDP) began breaking itself up last month with  the spin off of its material science business, the new Dow Corporation (DOW). The new company joined both the Dow Jones index and the S&P 500 index. DowDupont’s next and final spinoff, Corterva Bioscience, is scheduled for June.
  2. April 1st – Ironwood Pharmaceuticals (IRWD) spun off its R&D business Cyclerion Therapeutics. The new company trades under the ticker CYCN and shareholders received 1 share of Cyclerion stock for every 10 shares of IRWD stock owned. Cyclerion expects to have enough cash to fund about two years of development and the parent company now expects to be profitable going forward. Win/win?
  3. April 1st – in this edition of ‘Shady Spin Of The Month’, mCig claimed it would distribute shares of ObitX. But the shares or any information on them cannot be found. A cannabis company spinning off a blockchain and crypto business…need we say more?
  4. April 4th – AP Moller Maersk (AMKBY) is slowly turning itself into a pure play transportation company. As part of that initiative, the company spun off its drilling business, The Drilling Company of 1972(DDRLF). The Maersk family still retains a hefty stake in the company and has agreed to an ~1 year lockup on its shares.
  5. April 9th – Novartis (NVS) completed the spinoff of Alcon(ALC), its eye care business. Novartis’ takeover of Alcon will not be remembered so fondly, but perhaps as a newly independent company, Alcon can chart a better course for itself. Shareholders will received 1 share of ALC stock for every 5 shares of NVS stock owned.

Spinoffs Set For Coming Month

Not much on the calendar for May, but, you never know!

  1. Late May – VF Corp(VFC) will spin off its jeans business as Kontoor Brands. Given that the timing was reiterated just this week, final details should be forthcoming soon.

Please check out our ‘Upcoming Spinoffs’ table for a more complete picture of what is to come and as always, please let us know if we missed anything!

Disclosure: Author has no position in any stock mentioned