On the 30 July 2010, DuluxGroup was spun out of Orica and commenced trading on the ASX at $2.50 a share. In April this year, the board of Dulux recommended that investors accept a $4.2 billion bid for their Dulux shares from Nippon Paint. According to an AFR report, that deal makes Dulux the third-best performing stock in the ASX200 over the past decade. Matt Williams, Portfolio Manager at Airlie Funds Management, says that demergers have a track record of delivering such exceptional returns for investors. However, not all demergers are successes. Williams says there are some simple rules that he follows to help separate the winners from the duds.
In our latest deep dive interview, Matt Williams explains why he believes the chances of recession in Australia have faded, how he views the current investment backdrop and two companies from where successful demergers could arise.
0 Comments