As we reported earlier, Siemens(SI) board was meeting today to discuss moving forward with the spinoff of its Osram lighting division. Today, the company announced that the board will propose the spinoff to shareholders at its Annual General Meeting on January 23. The plan requires 75% approval at the AGM. The company will be distributing 80.5% of Osram… Read More »
We’ll admit it, when we wrote, with more than a little derision, about U.S Rare Earth Minerals'(USMN) planned spinoff of Bio Multimin, we assumed it would slink back into the mud, where it belongs, never to be heard of again. We were surprised then, to see today, nine months later, that the company not only still existed, but… Read More »
In July, we reported that VMWare(VMW) had plans to spin off its CloudFoundry business. Two days later, we reported that the company denied the rumor in an internal memo. Now, GigaOm is reporting that the spinoff is on. Its is expected that the move will be announced next week. The report states that all non-core VMWare divisions will… Read More »
Some spinoffs, like Bogen, have practically happened before you know about them. Others seem to be perpetually upcoming, with periodic reports indicating little progress. The long-discussed spinoff of Osram by Siemens(SI) falls into the latter category. We most recently discussed this in the summer, over a year after our first mention. As you may recall, after being unable… Read More »
Petrobank Energy (PBG.TO) is officially cutting the cord with its majority owned subsidiary Petrobakken (PBN.TO). While the company first listed a piece of PetroBakken back in 2009, it only recently announced plans to spin off its remaining 57% stake. The transaction seems a bit complex, but in the end, there will be two companies: a new Petrobank and… Read More »
Well…that was relatively quick. Shortly after entering into exclusive talks with Apollo Global Management (APO), McGraw-Hill (MHP) announced that it has reached a deal with the private equity firm to sell off its education unit. The rumored price tag of $2.5b turned out to be correct, so kudos to those rumormongers. Additionally, as part of the transaction, McGraw-Hill… Read More »
Earlier this month, AbbVie (ABBV) completed a debt offering totaling $14.7 billion, making it the largest high grade offering in U.S history by over $1 billion and the largest of the year by nearly $5 billion. The offering was said to be hugely oversubscribed with word of $47 billion in orders. AbbVie, which will be spun off to… Read More »
What to do when your company, whose main business is building and managing high quality roads, also owns a securities business? Alert readers here will instantly know the correct answer- SPIN! Zhejiang Expressway(ZHEXY), a Chinese company “is an infrastructure company principally engaged in investing in, developing and operating high-grade roads. The Group also carries on certain other businesses… Read More »
Bogen Communications International(BOGN) announced yesterday that it would be spinning off its subsidiary, Bogen Corporation. Interested in participating or in just learning more? Too bad. The company, which delisted and stopped filing with the SEC in 2004, actually made the decision on October 31, and applied it to shareholders as of November 19, before it announced its plans… Read More »
After several years of delays, Gavin Thomas, CEO of Australian miner Kingsgate Consolidated, tells Dealbook Australia that the company’s Thai unit, Akara Mining, may IPO in Thailand next June. Presumably, no shares of the newly separated unit would be distributed to shareholders, but this would allow the company to raise money to fund the development of its Thai… Read More »
Shareholders of Sears Holdings(SHLD) have been once again reminded that entropy is inexorably increasing, at least in their brokerage accounts. Less than a year ago they had only Sears, but since then, they have received in three separate transactions, Orchard Supply Hardware common (OSH) and preferred (OSHSP), warrants to buy Sears Hometown and Outlets (SHOS), and now, Sears… Read More »
Investing in spinoffs is certainly becoming more ‘mainstream’. As proof, Forbes’ most recent issue had a long writeup on the space titled ‘Why Spinoff Stocks Are Sizzling (And Should Stay Hot)‘. The piece is worth checking out and discusses the usual spinoff investment stuff – elimination of the conglomerate discount, corporate discard, ignored by market etc. – along… Read More »
Given the plethora of spinoff activity in the oil & gas space and the tendency of big corporations to ‘follow the pack’, it is no wonder that some are already thinking about which company is up next for a spin. In the eyes of Deutsche Bank analyst Paul Sankey, the two biggest names to keep an eye on… Read More »
When it comes to spinoffs, investors often focus on the management teams. One area of interest is compensation. Is management incentivized with long term options or stock to deliver strong performance? Another key issue is location. Who ends up where? There is a belief that top execs know the business best and want to be where the real… Read More »
Just a few months after initiating a strategic review of its options, Cookson (LSE:CKSN) got the go ahead from its largest shareholder to proceed with a spinoff of its performance materials division. The new company will be named Alent plc and become a leading ‘global supplier of advanced surface treatment plating chemicals and electronics assembly materials’. This isn’t… Read More »