Last November, Citrix Systems(CTXS) announced plans to spin off its GoTo business. This week, it announced that the spinoff would culminate in a merger with LogMeIn(LOGM) in a Reverse Morris Trust transaction. The transaction, which is expected to be tax-free, will leave Citrix shareholders owning 50.1% of the new company. LogMeIn’s management team, led by CEO Bill Wagner,… Read More »
ConAgra’s (CAG) planned spinoff of its potato product business, Lamb Weston, is making progress. The most recent milestones achieved were the filing of the company’s initial Form 10 and the naming of its top executives. Thomas Werner, currently President of ConAgra’s Commercial Foods business, will become CEO and Tim McLevish, currently a consultant, will become Executive Chairman. Sean… Read More »
After years of deliberations and studies, Hawaii’s Public Utilities Commission (the ‘HPUC’) recently ruled against NextEra’s (NEE) proposed takeover of local utility Hawaiian Electric (HE). The commission concluded that NextEra ‘failed to prove its plans for HECO would be good for the state’ and it wasn’t convinced it would ultimately benefit Hawaii’s consumers. A big sticking point appeared… Read More »
Mining giant Rio Tinto (RIO) announced a major structural reorganization several few weeks ago. As part of the restructuring, a group of ‘non core’ assets were lumped together inside of the newly formed Energy and Minerals group leading to speculation from analysts and reporters (and us) of a spinoff. After all, fellow mining peer BHP Billiton (BHP) did… Read More »
July 4th week is a good time to catch up on some recent spinoff transactions. Last week Hertz (HTZ) completed the separation of its equipment rental business Herc Holdings (HRI). This one was a bit tricky mechanically and here is how the transaction went down: To effect the separation as part of a tax-free spinoff, Hertz Global Holdings stockholders as of… Read More »
When Starz (STRZA) was first spun out of Liberty Media (LMCA) back in 2013, it seemed like only a matter of time before the company was acquired. Many rationalized the spinoff as purely an attempt to get the company sold and buyout rumors always seemed to swirl around the company (and keep its price up). It didn’t happen… Read More »
Rio Tinto (RIO) and its new CEO Jean-Sebastian Jacques are shaking things up. The mining behemoth unveiled a brand new organizational structure along with a set of new executives to drive the company forward during a difficult period. The company will now have four product groups and coincidentally a whole bunch of ‘non core’ assets ended up grouped together… Read More »
Supermarket operator SuperValu (SVU) revealed some new details this week about the potential spinoff of its discount operator Save-A-Lot in an amendment to its initial Form 10 filing. The big news is that instead of a tax free spinoff of ~80% of the company, shareholders will only receive 60% of the company and as a result, the spinoff will be… Read More »
Marketfolly recently posted a talk with The Baupost Group’s Seth Klarman from 2009, which some may remember as quite an interesting time in the markets. Mr. Klarman is considered one of the ‘great’ value investors and his words and writings are devoured by both aspiring and professional investors alike. The talk hits on a number of interesting areas (and… Read More »
Given their increased popularity and media coverage, spinoffs have recently received a lot of attention from regulatory bodies such as the IRS. In fact, one of the under reported items coming out of last year’s budget battle was Congress taking a stand against non-real estate companies spinning off REITs. Essentially, the bill requires a spinoff to wait 10… Read More »
After years of accounting related delays and management changes, Hertz’s (HTZ) spinoff of its equipment rental business, Herc Holdings, has finally been approved by the company’s board of directors. The mechanics and distribution ratios of the transaction are a bit kooky due to Hertz’s complex corporate structure: Stockholders of record as of the close of business on the record… Read More »
Yesterday, Zedge(ZDGE) completed its spinoff from IDT(IDT). The press release is short on details, focusing on the usual boundless optimism associated with a new spinoff. Tom Arnoy, co-founder and CEO of Zedge, said, “Since our inception, we have been focused on developing an exceptional service that enables Zedgers to express their identity, feelings, tastes and interests on their… Read More »
Hilton Worldwide Holdings(HLT) announced this morning that it has filed Form 10 registration statements for two previously announced spinoffs of its real estate and timeshare businesses. CEO Christopher J. Nassetta said the spins will be completed later this year. Following the transactions, Nassetta will continue to lead Hilton, which will be an asset-lite fee-based business. On a pro forma… Read More »
Eric Schmidt has a message for investors who think that Google’s shift to the Alphabet(GOOG) holding company structure and businesses increasingly far afield from search indicate a future breakup- don’t hold your breath. Schmidt, Alphabet’s Executive Chairman, spoke on the topic last week. When asked during Bloomberg’s Breakaway Summit on Wednesday whether the multifaceted company with a plethora… Read More »
Serial spinner IDT(IDT) has set the date for its spinoff of Zedge(ZDGE). IDT shareholders as of May 26 at 5PM will receive one share of Zedge for every three IDT shares that they own. The spinoff will be effective at 11:59PM on June 1. The company’s most recent form 10 can be found here. We recently had the… Read More »