NEW YORK--(BUSINESS WIRE)--Speaking to The Spinoff Report (TSR), the UK based leading global specialists on Corporate Break-ups (Spinoffs), their research coverage is now analyzing 112 future and potential corporate Spinoffs. Tyco’s (TYC) $24bn, x3 way break-up is one of the holdings increasingly adding value to TSR’s impressive Spinoff recommendation track record to its clients.
This coming Monday (Oct 1st) sees leading global fire and security market firm, Tyco International Spinoff* its Flow Control business segment that it has already completed an accretive all-stock; tax-free transaction valued at $4.9bn. It’s also splitting-off and demerging the leading alarm and security brand (solid 25% North American mkt share), ADT Corporation (ADT). TSR note, as predicated, both Spinoffs were also confirmed earlier this week to enter the S&P500, creating some comfort for any investors worried about potential index sellers
TSR’s target price and analysis released to clients earlier this year pins ADT’s fair value worth more +25% than yesterday’s when-issued closing price, and that’s not including TSR’s bull case target for a takeover!
“Our TYC research report demonstrates the full M&A opportunities for both ADT and TYC post break-up, including the synergies for every high potential takeover candidate”, commented Jim Osman, CEO of The Spinoff Report.
TSR believe that the Tyco demerger paves the way for operational efficiencies; open doors for potential buyers, a command control premium and that the M&A thesis is underscored by the merger of the flow control business with Pentair. They believe three core reasons to buy TYC exist: 1. Quality fundamentals and cash positive post-Spinoff, 2. Technically low risk, and 3. Have a high grade, well incentivized management team. Click here to get the full report
With other high value Spinoff analysis released recently by TSR to its clients such as, Nacco Industries (NC), Comverse Technology (CMVT), Hankook Tire (Ticker: 000240 KS), Kraft Foods (KFT), Brookfield (BAM) to name a few; the Spinoff space appears expertly covered for investors by the specialist London based outfit.