KEDM Lite Vol. 2
A low frequency but juicy strategy where the edge is government incompetence.
Let’s dig in…
This week’s additions and highlights
1. SPIN-OFFS
- Arko (ARKO US). Convenience store operator Arko recently completed the spin of its wholesale fuel distribution operations, ARKO Petroleum. Ticker APC. Interesting to keep an eye on this one given the big business differences as well as Arko’s focus on debt reduction.
- Realbotix (XBOT CN). It is generally indeed smart to keep your sex and family-friendly robots separated. Realbotix will spin its adult robot division into ex-biotech, now shell company Onconetix (ONCO). Weird case, but the large differences between the units (also in terms of growth potential) might warrant a look.
- Hexagon (HEXAB SS). Hexagon provided additional financial and organisational information for its upcoming Octave spin-off. The unit’s results have been under pressure over H1 25, but sported >30% ebit margins in 2024 and 27% in H1 25. Let’s hope for some interesting action after the spin.
UPDATE (February 17, 2026) The spin is now planned for the second part of Q2. Hexagon also provided more financial info on Octave.
- Talenom (TNOM FH). Talenom has initiated a strategic review regarding a separate listing of its Easor software business. A potential separation is planned for H1 26. A reminder that these businesses (e Accounting and Software) generally tend to be valued a quite different multiples, and are currently wrapped in one company trading at 7x ev/ebitda. UPDATE (October 27, 2025) Talenom approved the spin.
UPDATE (February 17, 2026) A reminder that Talenom will spin its software business (Easor) over the next few weeks. Interesting time, given the large pressure on Talenom’s share price. Q3 revenue dropped 13% mainly due to customer churn. Recent acquisitions created integration problems that pushed churn even higher. There’s also worries about leverage (Talenom has grown quite a bit inorganically). So we could see some interesting volatility here.
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
- Aegon (AGN NA). Bloomberg reported that Lloyds and Phoenix have submitted early bids for Aegon UK. Canada Life and Royal London are also in the mix, and the process is still open. A reminder that Aegon announced a strategic review of Aegon UK, preparing a formal sale process. Reports mentioned that Aegon is seeking around £1.2bn. Quite sizable (~13% of the market cap) which bodes well for potential shareholder return as Aegon is a decently capitalised company. Outcome expected in H1 26.
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Kuppy’s Event Driven Monitor (“KEDM”) is not a financial or investment advisor and the information contained in this publication is not intended to constitute legal, accounting, or text advice or individually-tailored investment advice and is not designed to meet your personal financial situation. The investments discussed in this publication may not be suitable for you. You are required to conduct your own due diligence, analyses, draw your own conclusions, and make your own investment decisions. Any areas concerning legal, accounting, or tax advice or individually-tailored investment advice should be referred to your lawyers, accountants, tax advisors, investment advisers, or other professionals registered or otherwise authorized to provide such advice. KEDM makes no recommendations whatsoever regarding buying, selling, or holding a specified security, a class of securities, or the securities of a class of issuers, and all commentary is for educational purposes only. The investment examples noted are intended to provide and example of the events and data KEDM flags each week and is not representative of typical returns generated by each event or any future returns.