Owners of E!, Boxer, Magnum & More Companies Set to List - Are You Investing?

New companies are set to be listed this year and next, including brands like Boxer and Unilever’s ice cream division, which owns Magnum and Wall’s ice creams.

These listings are part of spin-offs from their parent companies. Essentially, a spin-off occurs when a parent company creates an independent entity, typically by distributing shares of a subsidiary to current shareholders or selling the new entity publicly. This allows the spin-off to be traded separately, often done when a business segment operates in a different industry or has unique growth potential. By separating, the parent company aims to improve focus and shareholder value.

According to Unilever, as a standalone business, the ice cream division will have the flexibility to grow, allocate capital strategically, optimize manufacturing and logistics, and develop adaptable distribution channels. Meanwhile, Unilever will become a simpler, more focused company with four Business Groups -Beauty & Wellbeing, Personal Care, Home Care, and Nutrition.

The ice cream business will move to a new head office in Amsterdam, with options open for the listing location. “As part of the Group’s overall transformation, we are implementing a comprehensive productivity program and the separation of Ice Cream, both of which are progressing as planned,” the company stated in its third-quarter results for 2024.

The listing of Boxer is part of Pick n Pay's two-step recapitalization plan, which began with a rights offer for short-term liquidity, followed by the listing of the Boxer business on the Johannesburg Stock Exchange later this year. Pick n Pay will retain a majority stake in Boxer post-IPO, aiming to stabilize its balance sheet, strengthen liquidity, fund sustainable growth, and unlock shareholder value.

In its first-half results for the 2025 fiscal year, Pick n Pay mentioned that “the group remains on track with its plans to list Boxer on the Main Board of the Johannesburg Stock Exchange (JSE) and A2X by the end of 2024.”

Spin-offs often benefit the new company by attracting a tailored investor base and enabling independent capital access. As a publicly traded entity, the spin-off gains autonomy to set its strategies and streamline operations. This independence improves transparency, allowing investors to evaluate it on its own merits, providing visibility and financial independence in the public market.

Creating Value for Shareholders Through Spin-Offs

Often, spin-offs can enhance shareholder value by allowing investors to own shares in companies that are more closely aligned with their interests and risk profiles. When the parent company and the spin-off have different growth rates or risk factors, shareholders benefit from the ability to invest directly in one or both entities, depending on their investment goals.

Other companies have indicated plans to list subsidiaries separately. Comcast, for instance, intends to spin off its cable network business (which includes E! and CNBC), which would also be owned by its shareholders.

• Additionally, Aveng, a South African construction giant, intends to create two independent entities, with McConnell Dowell expected to seek a listing on the ASX and potentially the JSE as well.
• Continental announced plans to evaluate a spin-off and public listing of its Automotive group on the Frankfurt Stock Exchange, with shareholder approval expected in April 2025 and completion possible by year-end.
• In October, Honeywell announced plans to spin off its Advanced Materials business into an independent, publicly traded U.S. company by late 2025 or early 2026, in a tax-free transaction for shareholders.
• Topgolf Callaway Brands announced plans in September to separate into two independent companies by the second half of 2025.
• DuPont revealed in May its intent to split into three public companies - Electronics, Water, and New DuPont - with separations expected within 18-24 months.
• Last year, Western Digital's board approved a tax-free separation of its HDD and Flash businesses into two independent public companies, targeted for the second half of 2024.

As part of these spin-offs, shareholders of the parent companies usually receive shares of the newly listed company on a specified date once the spin-off is finalized. 

Round-Up

The alignment between shareholder interests and business strategy resulting from these corporate actions could help each company achieve better financial performance and stock market valuation.

As independent entities, both the parent company and the spin-off are typically better equipped to set clear strategic priorities and pursue operational improvements. With increased focus and flexibility, both entities could capitalize on unique growth opportunities, potentially boosting shareholder returns and enhancing market value. Investors should keep an eye on how these companies perform independently in quarterly financial results.

Earlier this year, Forbes reported that large conglomerates often use spin-offs to unlock value by shedding slower-growing units that can lower overall valuation. Spin-offs, sometimes driven by activist demands or peer pressure, help achieve a clearer valuation for both the parent and spin-off, sharpen strategic focus, boost growth, and increase shareholder value. Shares of the spun-off entities should also be available on EasyEquities when listed, where investors can trade, buy more, or hold. The shares will be distributed to shareholders of the parent company at a defined ratio and date provided by the company.

Boxer, a leading discount supermarket chain in Southern Africa, was founded in 1977 in Empangeni, KwaZulu-Natal, with a focus on providing affordable products to middle- and lower-income consumers.

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