Spin-offs usually create significant shareholder value. Several spin-offs may be in the making, although it's anyone's guess whether they will materialise. Already this year has seen 2 companies -- Thai Beverage and Avarga Holdings -- saying they were deferring announced spin-offs. Well, here's a list of possible ones still in the air:  


Tuan Sing, an investment holding company with core interests in property development, property investment and hotel ownership, indirectly owns 44.5% of Gultech (Jiangsu) Electronics.

Tuan Sing on announced on 30 April 2021 that Gultech China1 is selling a 13% stake in Gultech (Jiangsu) Electronics for RMB435 million to two China-based asset managers: Yonghua Capital and Wens Capital. 

Interestingly, Tuan Sing noted that the buyers have "proven track records in the pre-IPO space," adding that Gultech is "undergoing a strategic review of its business, including the possibility of a potential listing in China."

Global PCB manufacturer
PCB gultech

Gultech is a key player in the global print circuit boards market.

• Services a range of multinational customers across the automotive, computer peripheral, consumer electronics, telecommunication, healthcare, and instrument & control sectors.

The 13% stake transaction values Gultech, which makes printed circuit boards, at RMB3.35 billion.

And Tuan Sing's1 remaining effective interest post-transaction is 39%, a stake worth RMB1.31 billion (S$260 million). 

For perspective, Tuan Sing's market capitalisation (at 42 cents share price) is S$504 million.

1 Tuan Sing, through its wholly owned subsidiary, TS Technologies Pte Ltd, owns 44.5% of the issued shares in Gul Technologies Singapore Pte. Ltd. Gultech Singapore wholly owns Gultech China, which in turn wholly owns Gultech (Jiangsu) Electronics Co., Ltd.

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Wilmar’s 50%-owned associate in India, Adani Wilmar Ltd (AWL), has reportedly hired investment banks and legal advisers to start work on its initial share sale that could see AWL raise as much as ₹5,000 crores (US$690m).

CGS-CIMB put out a report on this on 22 March 2021, estimating that 
AWL's potential market value may be US$1.4bn to US$5.7bn. 

"Our current Sum-of-Parts-based target price conservatively values Wilmar’s AWL stake at 1x P/BV or US$176m only. There is potential upside of US$2.7bn (S$0.56/share) to our SOP," wrote analyst Ivy Ng, CFA. 

Her current target price is $6.15.


In a press release on 12 May 2021, transport group ComfortDelGro said it is exploring various options to unlock the value of its assets in Australia, where it is one of the largest privately-owned bus operators.

"The move could take a variety of forms including a partial sale of assets or an initial public offering."

It comes 16 years after ComfortDelGro first began operations Down Under through the acquisition of Sydney bus operator, the Westbus Group. Since then, the Group has grown significantly – both organically and inorganically – and now operates in six states and territories in Australia – New South Wales, Victoria, Western Australia, Canberra, Northern Territory and Queensland.

With a total investment of S$1.17 billion to-date, Australia is now the Group’s single largest overseas investment destination with public scheduled bus, private coach charter, ambulances, taxis and outdoor advertising operations.

For the year ended 31 December 2020, the Australian businesses chalked up a revenue of S$608 million, making it the Group’s best performing overseas operation.

CGS-CIMB'S report on 13 May 2021 said: "Our analysis of past Australian transport services M&A transactions and ASX-listed peers point towards a valuation range of 6.9x-13.1x EV/EBITDA, a premium compared to CD’s current valuation of 4.7x FY21 EV/EBITDA. We agree that a separate listing can allow better appreciation of its Australia operations."


DBS Research's report on 3 May 2021 aired its opinion, as follows: 

Time to consider restructuring and spin off? We opine that it might benefit Yangzijiang to list its investment arm on the following rationale:

1) Providing greater transparency and a fair market valuation for the investment business, alleviating investor concerns;

2) Unlocking value of Investment arm, through partial dividend-in-specie to reward shareholders;

3) Optimising return of investment segment - Restructure and broaden product offerings; leverage up and grow the portfolio to enhance returns.

We estimate that this could lift Yangzijiang’s fair value by 10-20% through reduction of valuation discount and growth in investment income.


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