A subclass of spinoff that has proven popular, especially under activist pressure has been the spinoff of real estate assets into a publicly traded REIT. Civeo’s (CVEO) spin from Oil States (OIS) was one example, though the company has now opted against REIT status, as was Penn National Gaming’s (PENN) spin of Gaming & Leisure Properties (GLPI). Now,… Read More »
Despite being independent for a mere five months, Civeo (CVEO) has sure generated a lot of excitement. Many anticipated that the company, a spinoff from Oil States International (OIS), was destined to become a REIT in order to better distribute its income. REIT status would also theoretically offer the company a more premium market multiple, boosting its price.… Read More »
Last week, we wrote about the nosedive in Civeo (CVEO) shares following lousy guidance and the announcement that the company would redomicile in Canada as a C corp instead of pursuing REIT status. Although the logic seemed reasonable, the decision was somewhat surprising as the REIT conversion seemed to be viewed as a big value driver by large, activist shareholders such… Read More »
Only a few scant months ago, Civeo (CVEO) was born, spun out of Oil States International (OIS) after activist pressure from Jana Partners and David Einhorn. The plan was for the workforce accommodations firm to convert to a REIT, as we described in this May post: Looking ahead, Civeo is studying the possible conversion to REIT status however,… Read More »
We are big fans of Jana Partners here. Although the fund describes its investment approach as ‘value plus catalyst’, it’s not afraid to get vocal and create its own catalyst. Just ask Agrium’s (AGU) management team. While that situation didn’t achieve the desired result, the firm has notched numerous activist victories including the spinoffs (or possible spins) at… Read More »
Last week featured a full line up of spinoffs with Simon Property Group (SPG) spinning off the Washington Prime Group (WPG) on Wednesday, May 28, and National Oilwell Varco (NOV) and Oil States International (OIS) spinning off NOW Inc (DNOW) and Civeo (CVEO) respectively on Friday, May 30. The new companies are all significant enough to force a reshuffle of… Read More »
As planned, Oil States International (OIS) completed its spinoff of accommodations unit Civeo (CVEO) after the close of business on Friday, May 30, 2014. OIS shareholders received two shares of Civeo for each share they owned. As is often the case, each company issued its own, slightly different press release this morning marking the completion of the transaction.… Read More »
Oil States International’s (OIS) board of directors approved the spinoff of its accommodations business, Civeo Corporation. The new company will trade on the NYSE under the ticker ‘CVEO’ and OIS shareholders will receive 2 shares of CVEO for every OIH share owned. The distribution is expected to take place on May 30th to shareholders as of the close on… Read More »