$18bn Sony (SNE) Break-Up Spinoff Report. Japanese Demergers To Grow
NEW YORK & LONDON -- May 14, 2013
“Large Cap ($5bn+) Spinoff stocks delivered early shareholders +27% on avg.
one year post listing over the last decade”, according to top global break-up
research advisors, The Spinoff Report®.
$18bn market cap, Sony (SNE or 6758 JT), has been approached by renowned value
hunting US Hedge Fund, Third Point and its CEO, Dan Loeb. In essence, Loeb
believes by taking Sony Entertainment, the film and music division, and
selling up to 20% of it, the company could use the subsequent capital raised
to strengthen other segments of Sony which management need to prove they can
strategically develop to meet their future targets.
Ryan Mendy, COO of The Spinoff Report (TSR) believes there is another kicker;
“In technology, cash can be a King-maker. Don’t forget, SNE’s shares have lost
over ten times what they were worth in 2000. From our analysis, we believe a
future complete Spinoff of the remaining c80% of Sony Entertainment is
possible”. TSR highlight other stocks that have completed a c20% listing, then
once management have witnessed the growth, have decided to Spinoff the other
c80% to parent shareholders, e.g. Dean Foods Co. (DF), Sunoco (SUN). Examples
of other future 20/80 ‘percenters’ from their research are: Inergy (NRGY) and
Last week, Sony reported an annual profit for the first time in five years,
reportedly boosted by asset sales and a weakening yen. But the latter is one
of the catalysts for investors concentrate on if looking at Japan and its
ability to break-up and unlock some of its most valuable stocks, according to
More Future Japanese break-up stocks?
Loeb personally visiting Sony’s CEO is the right approach shareholders need to
take if they are to change the minds of Japanese board management. “It’s
important culturally” cites Mendy. Japanese companies are open to investment
by US and European asset managers, but the risk is telling them how to
strategically run their businesses.
Mendy cites: “With a government change, currency revaluation and equities
being released, Japan is proving it is willing to take a new approach with
global markets if it is to grow”.
With a detailed future research calendar of global corporate break-ups being
released, The Spinoff Report® states there is much more to come from this
region for investors.
Ryan Mendy, COO
The Spinoff Report Ltd
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