In today’s briefing:
- 4 Spin-offs with Insider Buying
- The Hot Chatter in the Local Market: Tax-Free Dividends – Is Samsung In?
- NIOX Group Faces Potential Acquisition by Keensight Capital Amid Ongoing Private Sale
- Ashok Leyland Restructuring: Switch UK Winds Down & Switch India’s Strategic Pivot
4 Spin-offs with Insider Buying
- One factor that I closely follow in the spin-off universe is insider buying.
- Here’s what Peter Lynch wrote about insiders and spin-offs in One Up on Wall Street: [Spin-offs] are a fertile area for amateur investors…….A month or two after the spinoff is completed, you can check to see if there is heavy insider buying among the new officers and directors.
- There are four names in my universe that have interesting insider activity.
The Hot Chatter in the Local Market: Tax-Free Dividends – Is Samsung In?
- Chosun reports that some Samsung affiliates are exploring tax-free dividends at the operational level, with execs reportedly briefed on the idea.
- Surprisingly, regulators and politicians haven’t objected to tax-free dividends, which ironically align with the value-up policy. The delay in Samsung’s value-up announcements may be due to this decision.
- It’s unclear if Samsung Electronics and Life will drop tax-free dividends, but if regulators approve, they could introduce it suddenly in their value-up updates, especially with Lee Jae-yong’s cash crunch.
NIOX Group Faces Potential Acquisition by Keensight Capital Amid Ongoing Private Sale
- NIOX Group received a non-binding takeover proposal from Keensight Capital at 81p/share, with a 9% spread.
- NIOX’s management is open to the offer, having previously run a limited private sale process with ongoing negotiations.
- Valuation at 81p/share aligns with industry standards, given NIOX’s growth, profitability, and upcoming product launches.
Ashok Leyland Restructuring: Switch UK Winds Down & Switch India’s Strategic Pivot
- Ashok Leyland (AL IN) plans to shut manufacturing at its UK EV subsidiary, Switch Mobility UK, and shift focus to India and UAE plants.
- The UK exit curbs cash burn and earnings drag, while Switch India, driven by rising demand, nears breakeven with 1800+ e-Bus orders and 80%+ e-LCV share.
- This marks a value-accretive pivot, realigning capital to India’s high-growth EV market and improving group-level profitability and return metrics.
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