Siemens (SIEGY) Weighs Unusual Plan for Healthineers Stake
Siemens AG (OTC: SIEGY) is reportedly exploring a separation of its ~71% stake in Siemens Healthineers (SHL.DE). Instead of a traditional carveout IPO or straightforward spinoff, Siemens is said to be studying a direct distribution of Healthineers shares to its own shareholders.
That approach would be unusual in the German market, where large stakes are more commonly sold down gradually or monetized via secondary offerings. If Siemens moves forward, the mechanics of how a direct distribution would work under German corporate and tax law will be closely watched. Siemens Healthineers purchased Varian Medical Systems in 2020. Varian spun off Varex Imaging in 2017.
Canada Packers (CPKR.TO) Officially Spun Off from Maple Leaf Foods (MFI.TO)
Maple Leaf Foods (TSX: MFI) has completed the separation of its pork operations as Canada Packers Inc., effective October 1.
Key details:
- Maple Leaf retains a ~16% stake in Canada Packers.
- The two companies signed an evergreen supply agreement, with Maple Leaf remaining an anchor customer.
- Canada Packers shares began trading on the Toronto Stock Exchange under the ticker CPKR.TO on October 2.
This completes a long-anticipated split, with investors now able to value Canada Packers independently on the public markets.
Aptiv (APTV) Considers Sale Instead of Spinoff
Aptiv (NYSE: APTV), which had announced plans to spin off its electrical distribution systems business, may be changing course. According to Bloomberg, the company is now considering an outright sale of the unit instead.
The shift from a spinoff to a sale would significantly alter the outcome for investors. A sale could generate immediate cash proceeds but limit long-term upside, while a spinoff would have allowed shareholders to participate directly in the performance of the new company.
Disclosure: The author holds no position in any stock mentioned.