Australia's Brambles Spins Off Recall Holdings
Brambles Ltd. has announced a revival of a previous plan to exit Recall Holdings. Recall Holdings, a data management business, would then be listed on the Australian Securities Exchange (ASX).
According to Paul Xiradis, who is Ausbil Dexia's Chief Executive and owner of shares in Brambles, "It's a good move. It has been talked about that this may be a likely outcome, so the market can focus on evaluating the pallet business overall."
Brambles would no longer have anystake in Recall Holdings. It was also expected the demerger would allow the Australian pallet supplier to focus on its growth.
A fund manager at Karara Capital, Akshay Chopra, said that the initial public offering value of Recall would be about the same price as was initially shelled out for its acquisition or even lower. The profit decline was expected after several IPOs from Asia-Pacific have been cut or pulled.
However, the planned spin off is pending shareholders' approval on December.