QP 26: An attractive remainco opportunity

Sale of a large asset leads to an attractive r/r

Hello Ultimate Value readers,

I’ve been working on a few ideas— but this one popped up today, and I thought it was compelling enough to do a quick write-up.

This is a type of setup I’ve come to really like: a story of a company divesting an asset at a premium to the current market cap, and leaving a remainco with significant cash on the balance sheet, that caps downside and provides asymmetry.

Let’s take a look.