Tag: spinoff

Intel: A Spin-Off Of Mobileye Would Be A Bad Idea (NASDAQ:INTC)

Intel (INTC) shares are down by over 20% since July peaks, ever since it announced that its 7nm node is delayed by six to twelve months. This gave birth to a plethora of speculative discussions across various investing forums on how the chipzilla’s management can possibly boost shareholder returns. Amongst the many proposals, fellow Seeking Alpha contributor The Value Portfolio pitched an intriguing idea that Intel may want to spin off Mobileye. While it was a well-written and clearly articulated thesis, I believe such a move may be detrimental to Intel and its long-term shareholders for now.

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The Rationale

For the uninitiated, Intel acquired Mobileye back in 2017 for $15.3 billion. This ADAS and autonomous driving systems startup had recorded only $358 million in revenue in FY16, which meant the buyout took place at over 42 times its trailing fiscal year sales. Intel’s management was openly lambasted across

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Reliance Industries unveils spinoff plan for O2C business

Reliance Industries Ltd (RIL) has formally set in motion the process of spinning off its oil-to-chemical (O2C) business into a separate subsidiary and induct partners into the entity.

It has come up with a detailed scheme of arrangement to transfer the undertaking to the O2C subsidiary through a slump sale, which is likely to be presented to the National Company Law Tribunal (NCLT) for approval. 

At its annual general meeting in July, RIL chairman Mukesh Ambani had disclosed that they expect to complete this process of spinning off into a separate subsidiary by early 2021.

Though a proposed deal with Saudi Aramco in the 02C business did not make much progress since its announcement last year, there has been some ray of hope recently with Aramco indicating that it is doing a due diligence on picking up a stake. 

According to the scheme of arrangement, the transferee company, or the

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