The Overseas Shipholding Group (OSG) completed the taxable spinoff of International Seaways (INSW) on schedule last week. On November 30th, OSG shareholders should have received 0.3333 shares of INSW and the first day of trading was on December 1st. As discussed in our earlier piece, the situation for warrantholders was slightly different. As per usual, the internal goodwill was… Read More »
It’s not surprising to see companies experienced with spinoffs go back to the same playbook, but Varian Medical System’s (VAR) upcoming Imaging Components spinoff is still a bit surprising. After all, it’s been 17 loooong years since Varian Associates broke itself into three different parts, including Varian Medical Systems. The new business will be named Varex Imaging Systems and… Read More »
To everything there is a season, and the season for magazines has passed and will not return. In the summer of 2014, Time Warner(TWX) spun off Time, Inc.(TIME), its magazine publishing division. Joe Ripp, the CEO who presided over the spinoff, valiantly tried to cut costs and move to digital, but his efforts fell short. This summer, he… Read More »
Overseas Shipholding Group(OSG) is in the process of spinning off its International Flag business, International Seaways. On November 30, OSG shareholders will receive 0.3333 shares of International Seaways common stock for each share of OSG held on November 18. In addition, holders of OSG warrants will receive approximately .06332 shares per warrant held. International Seaways, which is already trading… Read More »
On November 1, Alcoa(AA) completed its spinoff from the former Alcoa, now named Arconic(ARNC). The new Alcoa is “is a globally cost-competitive industry leader in bauxite, alumina and aluminum products, positioned to succeed throughout the market cycle.” “We are launching Alcoa Corporation as a world leader in the aluminum industry with distinct competitive advantages across the value chain,”… Read More »
Johnson Controls (JCI) completed its inversion deal/merger with Tyco in early September creating a powerhouse in building solutions for efficiency and fire and safety. With the merger complete, the company can now complete the spinoff of its non-core automotive and interiors business, Adient. The spin was announced way back in 2015, but rumors of a spin existed even earlier.… Read More »
HCP ‘s (HCP) board of directors approved the spinoff of Quality Care Properties, a REIT whose portfolio is comprised of skilled nursing and assisted living facilities. At the time of the spin announcement, Quality Care Properties, which was previously known internally as HCR ManorCare, was expected to own over 320 properties with estimated annual rent of about $485… Read More »
There are a number of spinoffs scheduled to be completed at the end of this month (October) or in early November and naturally, there are a few scheduled changes to the S&P indices as a result. Here is a summary of the changes which will occur over the next week or so: HCP Inc (HCP) is spinning off Quality… Read More »
It’s no surprise that many recently announced spinoffs have been abandoned in favor of outright sales. Possible reasons include the fact that numerous industries are suffering from a lack of organic growth or the fact that these bite size carve out pieces are more easily acquired. Oh yeah, it also helps when acquirers toss around rich valuations. The… Read More »
You may have noticed a lull in our regular programming and for that we apologize. Over the past few weeks, a number of spinoff transactions have closed leading to quite a few shifts within the S&P indices. Here is a summary of the various transactions: Honeywell’s (HON) AdvanSix (ASIX) spinoff was distributed on October 1st and the new company… Read More »
Just months after being spun off from Baxter International(BAX), Baxalta found itself the target of an intense pursuit by Shire Pharmaceuticals(SHPG). Baxalta resisted, but, ultimately agreed to a deal which closed earlier this year. Barron’s sees good things ahead for the combined company. In an article this weekend, the venerable publication points out that merely by achieving a… Read More »
There was much investor chatter last month that Gilead Sciences(GILD) could unlock value by splitting its Hepatitis C business from its HIV business. RBC Capital advanced the case in a note RBC Capital suggested the drugmaker would be better off cutting its businesses right down the middle, saying that shares could jump by as much as 40% if… Read More »
Honeywell’s (HON) board of directors approved the spinoff of AdvanSix, its resin and chemical business. The spinoff will take place on October 1st and shareholders as of September 16th will receive 1 share of AdvanSix for every 25 shares of HON owned. A When-Issued market is expected to be in place beforehand, but post-spin, the company will trade… Read More »
The temperatures remain high, but the summer season is winding down so lets catch up on some news we may have missed. In early August, Emerson Electric (EMR) reached a deal to sell off its network power business to a group led by private equity firm Platinum Equity for the price tag of $4b. The unit generated revenue… Read More »
AbbVie(ABBV) surged out of the gate following its January 2013 spinoff from Abbott Laboratories(ABT). By December 2014, the stock price had doubled. Since then, however, the stock languished, continuing to trade below its December 2014 highs. Despite efforts to diversify, Humira, which is now off patent, accounts for 60% of revenue. Barron’s reports that Raymond James now thinks… Read More »