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>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).


<ul><li>This week, I recommended a new idea: Buy International Gaming Technologies.</li><li>If you are interested in buying IGT, I would recommend doing so on Monday.</li><li>IGT is in the process of selling its Gaming division for $4BN, and the transaction could close as soon as Tuesday, July 1.</li></ul>

This week, I recommended a new idea: Buy International Gaming Technologies.If you are interested in buying IGT, I would recommend doing so on Monday.IGT is in the process of selling its Gaming division for $4BN, and the transaction could close as soon as Tuesday, July 1.

<ul>
<li>International Gaming Technologies (IGT) is in the process of selling its Global Gaming and PlayDigital segments.</li>
<li>The merger arbitrage market implies a high likelihood that this deal closes soon ($14.23 share price for EVRI vs. acquisition price of $14.25).</li>
<li>Guidance is the deal could close as soon as July 1, 2025.</li>
</ul>


International Gaming Technologies (IGT) is in the process of selling its Global Gaming and PlayDigital segments.
The merger arbitrage market implies a high likelihood that this deal closes soon ($14.23 share price for EVRI vs. acquisition price of $14.25).
Guidance is the deal could close as soon as July 1, 2025.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>International Game Technology's first quarter 2025 financial results reveal strengths and challenges in its lottery business.</li><li>The company experienced a significant decrease in revenue from $661 million last year to $583 million this year, primarily due to the absence of high jackpot activity in the U.S. compared to several significant ones during the same period last year.</li><li>This variance impacted the company's revenue and margin, underscoring the volatility directly tied to large multimillion-dollar jackpots, which appear sporadically, affecting the company's results on a quarterly basis.</li></ul>

International Game Technology's first quarter 2025 financial results reveal strengths and challenges in its lottery business.The company experienced a significant decrease in revenue from $661 million last year to $583 million this year, primarily due to the absence of high jackpot activity in the U.S. compared to several significant ones during the same period last year.This variance impacted the company's revenue and margin, underscoring the volatility directly tied to large multimillion-dollar jackpots, which appear sporadically, affecting the company's results on a quarterly basis.

International Game Technology (IGT): An Insight Into Its Capital Allocation Strategy & Financial Positioning!

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 (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

Weekly Update (AMRZ, UNTC, MEDXF, IGT)

This week, I recommended a new idea: Buy International Gaming Technologies. If you are interested in buying IGT, I would recommend doing so on Monday.

Richard Howe

Buy International Gaming Technologies

International Gaming Technologies (IGT) is in the process of selling its Global Gaming and PlayDigital segments. The merger arbitrage market...

Richard Howe

International Game Technology (IGT): An Insight Into Its Capital Allocation Strategy & Financial Positioning!

International Game Technology's first quarter 2025 financial results reveal strengths and challenges in its lottery business. The company...

Baptista Research

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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