Potential Growth from Restructuring: Extra Shares & Special Dividends

More than 60,000 investors across different companies are set to receive extra shares from upcoming corporate restructuring events - if these deals are finalised, will you be one of the investors in line? 

Several companies in both local and global markets are set to undergo spin-offs, unbundlings, mergers, and other corporate separations. These moves aim to streamline operations, sharpen strategic focus, and unlock value, often rewarding shareholders with additional shares.

Spin-Offs, Mergers, and Investor Rewards

Corporate actions of this nature are designed to streamline business structures and create opportunities in newly independent, combined, or unbundled entities. Spin-offs, demergers, and unbundling typically hand investors shares in the separated business, while mergers can result in shareholders of both companies receiving shares in the newly formed group. 

Recent and upcoming examples highlight how this is playing out in both South African and global markets:

• Remgro is preparing to unbundle its stake in E Media Holdings (EMH), giving shareholders direct shares in EMH.
• Renergen shareholders stand to receive ASP Isotopes Inc. (ASPI) shares once its pending acquisition is finalised.
• Curro is set to delist via a scheme of arrangement, where investors will receive cash, along with Capitec and PSG Financial Services shares per Curro share. 
• Anglo American has announced plans to merge with Canada’s Teck Resources. As part of the transaction, Anglo intends to pay a special dividend to existing shareholders and rebrand as Anglo Teck, creating a powerful new resources group.

Globally, several large companies are restructuring in similar ways:

• Continental will spin off and publicly list its Automotive group.   
• Unilever is spinning off its ice cream division (Magnum, Wall’s).
• Honeywell is separating its Advanced Materials business.
• DuPont is splitting into three companies focused on industrials, electronic materials, and water solutions. 
• Warner Bros. Discovery and Kraft Heinz both plan to divide into two standalone businesses.
• Keurig Dr Pepper will acquire JDE Peet’s before splitting into Global Coffee Co. and Beverage Co.

It’s worth noting that the last day to buy shares that qualify for the upcoming spin-off and unbundling of Continental and Remgro is later this week and next week. Together, these moves broaden portfolios, diversify exposure, and unlock value that might otherwise remain hidden within complex corporate groups.

Conclusion 

These events create diversification across industries and geographies, provide exposure to focused businesses or powerful new combinations, and open the door to potential new growth stories. Once finalised, shares bought on or before the last date to trade qualify to participate in the event, though investors may still trade (buy or sell) shares in the meantime. 

At the same time, these moves can shift portfolio weightings, dividend streams, and liquidity, prompting some to rebalance while others hold on for the long term. Ultimately, spin-offs, separations, and mergers illustrate how corporate restructuring can be a catalyst for both portfolio growth and strategic decision-making.

Sources – EasyResearch.

Follow Cay-Low Mbedzi

@caylow_SA

Government bonds offer a reliable way to earn fixed income by lending money to the government in exchange for regular interest payments. 

Dividends are one of the many key components of investing, representing a share of a company's profits distributed to its shareholders. 

Special dividends, also known as extraordinary dividends, are one-time payments made by companies to shareholders due to specific financial events, like windfall profits or asset sales.