Q: Your thoughts please on MFI spin off of pork business.
5i Research Answer:
MFI has been a laggard over the last year, but the announcement of the spin-off has the stock up nearly 5% at the time of writing. MFI shareholders will receive shares in the new company, while MFI will keep a 19.9% ownership position. The transaction is pending shareholder approval and is expected to be ccompleted in 2025. Spinoffs typically do a good job at creating value for shareholders by allowing the spunout entity to have more operational flexibility and potentially helping the parent company deleverage. This could be a good move for MFI, but we will need more details and time to evaluate what the potential impact could be.