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Active vs passive funds and your portfolio We’re not igniting the debate, since both types have their merits THE PROCESS of structuring your investment portfolio is...

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Stock Picks

Tiger Brands (TBS ZA)

Analysts: Peet Serfontein and Jalpa Bhoolia -

Listed on the JSE, Tiger Brands is a branded fast-moving consumer packaged goods company that operates mainly in South Africa and selected emerging markets. The core business is the manufacturing, marketing and distribution of everyday branded food and beverages.

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Stock Market Education

Terminology / Concepts / Explanations

Chantal Marx -

Advantages include greater management focus and potential shareholder value

UNBUNDLINGS OR spin-offs are transactions in which a company with various lines of business distributes its shareholding in a subsidiary/ies that either do not form part of its core operations, or can be run completely separately to its shareholders.

Such a disposal is different from a sale of the business, because it is effected by splitting out the business and giving shareholders ownership of the shares in the separated business on a pro-rated basis.

This is done for a number of reasons, but usually involves an attempt by management to focus on its core operations, and/or to unlock value for shareholders.

How this works in practice Company A announces that it will un-bundle its shares in its subsidiary, Company B, to shareholders in the ratio of 0.5 Company B shares per 1 Company A share held. An investor who holds 100 shares in Company A will receive 50 shares in Company B.

On the last day to trade to participate in the unbundling, Company A was trading at ...