Vontobel sees value from Swiss spin-offs ahead of Sandoz separation
26/09/2023 09:06
** With spin-off activity high so far this year, Vontobel
notes Swiss spin-offs have historically unlocked value for
shareholders but is cautious about transactions globally
** "The two most recent and largest spin-offs in Switzerland
have been successful, but globally only half of the transactions
have created value for shareholders," the brokerage says
** Successful spin-offs of Alcon ALCC.S by Novartis
NOVN.S in 2019 and Accelleron ACLN.S by ABB ABBN.S in 2022
in Switzerland paved the way to Sandoz's separation from
Novartis, and may lead to ABB's e-mobility spin-off in late
2024, it says
** "When companies recognize that they are no longer the
best owner of an asset, divestitures or spin-offs are attractive
strategic options," the broker says
** Global spin-off activity in 2021 and 2022 were clearly
above the 10-year average, it adds
** In a separate note, J.P.Morgan says its updated forecasts
ahead of the Sandoz spin-off put Sandoz's fair value at CHF 27,
or CHF 5.6 per Novartis share based on 5:1 share ratio
** JPM sees combined fair value of Novartis and Sandoz
standalone valuations at 95 CHF, implying a 3% upside to current
Novartis levels
(Reporting by Linda Pasquini)
((linda.pasquini@thomsonreuters.com))