Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Honeywell’s spin-off of its Advanced Materials business, to be named Solstice Advanced Materials (SOLS), is scheduled for completion in Q4 2025.</li><li>Solstice recently filed its <a href="https://www.bamsec.com/filing/206495325000006/20" target="_blank" rel="noopener">Form 10 Information Statement</a> and confirmed Q4 timing. Here is the slide deck that <a href="https://stockspinoffinvesting.com/wp-content/uploads/2024/10/Honeywell-Advanced-Materials-Spin-off-Presentation.pdf" target="_blank" rel="noopener">was published</a> at the time of the announcement last fall.</li><li>An investor day is planned for October 8, 2025, in New York City, where Honeywell will provide further details on Solstice’s business strategy and growth prospects.</li></ul>

Honeywell’s spin-off of its Advanced Materials business, to be named Solstice Advanced Materials (SOLS), is scheduled for completion in Q4 2025.Solstice recently filed its Form 10 Information Statement and confirmed Q4 timing. Here is the slide deck that was published at the time of the announcement last fall.An investor day is planned for October 8, 2025, in New York City, where Honeywell will provide further details on Solstice’s business strategy and growth prospects.

<ul><li>In December 2024, Continental’s (XTRA: CON) Executive Board approved spinning off the Automotive group sector by end of 2025, with preparations wrapping up by Q3 2025</li><li>The new Automotive company (“Aumovio”) which generates ~€20BN in sales, will begin regular way trading in September.</li><li>The automative business has struggled, but management has plans in place to improve margins over time.<figure class="editor-figure mceNonEditable"></figure></li></ul>

In December 2024, Continental’s (XTRA: CON) Executive Board approved spinning off the Automotive group sector by end of 2025, with preparations wrapping up by Q3 2025The new Automotive company (“Aumovio”) which generates ~€20BN in sales, will begin regular way trading in September.The automative business has struggled, but management has plans in place to improve margins over time.

<ul><li>In November 2024, Liberty Broadband (Nasdaq: LBRDA/LBRDK) agreed to be acquired by Charter Communications (CHTR) in an all‑stock deal.</li><li>Under the merger agreement, each Liberty Broadband common share will convert into 0.236 share of Charter common stock (plus cash for fractional shares), and each Liberty preferred share will convert to a new Charter preferred share.</li><li>As part of the deal, Liberty Broadband will spin off its fully owned Alaska telecom business (GCI, LLC) to Liberty shareholders before the Charter merger closes.</li></ul>

In November 2024, Liberty Broadband (Nasdaq: LBRDA/LBRDK) agreed to be acquired by Charter Communications (CHTR) in an all‑stock deal.Under the merger agreement, each Liberty Broadband common share will convert into 0.236 share of Charter common stock (plus cash for fractional shares), and each Liberty preferred share will convert to a new Charter preferred share.As part of the deal, Liberty Broadband will spin off its fully owned Alaska telecom business (GCI, LLC) to Liberty shareholders before the Charter merger closes.

Weekly Update (GCI, IGT/BRSL, Greenblatt)

<ul>
<li>Fortive (FTV) spun off 1 share of Ralliant (RAL) for each 3 shares owned.</li>
<li>As such, Ralliant has 113MM shares outstanding and a market cap of $5.1BN and enterprise value of $6.1BN.</li>
<li>The rationale for the spin-off is to separate the “BadCo” (Ralliant) from the “GoodCo” (Fortive RemainCo).</li>
</ul>


Fortive (FTV) spun off 1 share of Ralliant (RAL) for each 3 shares owned.
As such, Ralliant has 113MM shares outstanding and a market cap of $5.1BN and enterprise value of $6.1BN.
The rationale for the spin-off is to separate the “BadCo” (Ralliant) from the “GoodCo” (Fortive RemainCo).


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ainsworth-game-technology-limited" target="_blank" data-smartkarma-citation="entities:957:1" rel="noopener">Ainsworth Game Technology (AGI AU)</a> entered into a scheme implementation deed with Novomatic, its controlling shareholder, at A$1.00 per share, a 35.1% premium to the unaffected price.</li>
<li>The final offer is unattractive. Kanen Wealth Management <a href="https://www.afr.com/companies/games-and-wagering/ainsworth-shareholder-slams-takeover-bid-as-shares-climb-31-per-cent-20250428-p5lutb" target="_blank" rel="noopener">opposes</a> the offer. The lack of irrevocables from Spheria and Allan Gray adds to the vote risk.   </li>
<li>Cognizant of the scheme vote risk, Novomatic has the option to switch to an alternative takeover offer, which has a 75% minimum acceptance condition, thereby limiting the downside risk.</li>
</ul>



Ainsworth Game Technology (AGI AU) entered into a scheme implementation deed with Novomatic, its controlling shareholder, at A$1.00 per share, a 35.1% premium to the unaffected price.
The final offer is unattractive. Kanen Wealth Management opposes the offer. The lack of irrevocables from Spheria and Allan Gray adds to the vote risk.   
Cognizant of the scheme vote risk, Novomatic has the option to switch to an alternative takeover offer, which has a 75% minimum acceptance condition, thereby limiting the downside risk.


Ainsworth Game Technology (AGI AU): Novomatic’s Polarising Scheme Offer

United States

International Game Technology PLC designs, develops, manufactures, and distributes computerized gaming equipment, software, and network systems. The Company's products consist of slot machines, social gaming platforms, and other interactive gaming machines. International Games also provides maintenance services.

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Brightstar Lottery (BRSL US)

Weekly Update (HON, SOLS, BRSL)

Honeywell’s spin-off of its Advanced Materials business, to be named Solstice Advanced Materials (SOLS), is scheduled for completion in Q4 2025.

Richard Howe

Weekly Update (BRSL, SUNN, CON)

In December 2024, Continental’s (XTRA: CON) Executive Board approved spinning off the Automotive group sector by end of 2025, with preparations...

Richard Howe

Weekly Update (GCI, IGT/BRSL, Greenblatt)

In November 2024, Liberty Broadband (Nasdaq: LBRDA/LBRDK) agreed to be acquired by Charter Communications (CHTR) in an all‑stock deal. Under the...

Richard Howe

Weekly Update (IGT/BRSL, FTV, RAL)

Fortive (FTV) spun off 1 share of Ralliant (RAL) for each 3 shares owned. As such, Ralliant has 113MM shares outstanding and a market cap of $5.1BN...

Richard Howe

Ainsworth Game Technology (AGI AU): Novomatic’s Polarising Scheme Offer

Cognizant of the scheme vote risk, Novomatic has the option to switch to an alternative takeover offer, which has a 75% minimum acceptance...

Arun George

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