20% of Australasian respondents say that divestments are likely in the next six months.
After an intense period of deleveraging in the previous two years, the value of capital raisings fell by 81% in 2010, reaching just $2.8 billion. Instead, amid the ever present hunt for value, demergers started to come into play.
The second half of 2010 welcomed the long anticipated demergers of CSR, Tabcorp Holdings and Foster’s Group, and it is likely that 2011 will bring a number of smaller demerged entities into play while capital raisings continue to decline.
Are you likely to consider or undertake a JV/alliance in the next 12 months
The rise of the demerger
20% of Australasian respondents say that divestments are likely in the next six months, slightly up from October last year, and the trend for joint ventures has inclined consistently throughout our barometers.
Australasia: what is your preferred route for divestments?
| 37% |  | of Australasian respondents are focused on the performance of their subsidiary business, up from 24% last October. |
Joint venture has also increased as a preferable route for planned divestment, up from 20% in October to 31% this April.
This shift in focus is an indication that Australasian businesses are enhancing their subsidiaries’ performance, in order attract demerger partners and extract more value from pending deals.
How likely are you to execute a divestment over the next 6 months
<< Previous | Next >>
