This week’s additions and highlights
1. SPIN-OFFS
- Flex (FLEX US). Flex recently jumped on a strong 2027 outlook but also plans to spin off its cloud and power infrastructure business, the latter separating its rapidly growing AI-focused business from the core manufacturing business. Let’s wait for more details, but you know we like to keep a close eye on potential hype stocks. Also, a reminder that the previous spin Nextpower (NXT US) is up almost 200% in roughly a year. Will we get a repeat? UPDATE (July 27, 2026) The cloud and power infra spin-off is progressing, with the company mentioning that spinco will have ~$6.6bn in revenue, with management guiding for 65-75% growth this year and 80%+ next. Close(st) peer Vertiv (VRT) is currently trading at 11x EV/sales, which would provide decent upside from here.UPDATE (September 8, 2026) Flex is buying EPC Power for $4.4bn. EPC will be part of Flex’s Cloud and Power Infrastructure (CPI) segment, which Flex is planning to spin-off in Q1 27. EPC will add roughly $800m revenues to CPIs $5.7bn or so and boasts >40% organic growth. Again: keep an eye on this one, as the difference in underlying growth between the businesses is just huge.
- TKH (TWEKA NA). HAL recently crossed the 10% threshold just as long‑term holder Janus Henderson exits. That shift looks like weak hands giving way to a patient, strategic owner. Given HAL’s history of steadily increasing stakes and often leading to control or full take‑outs, it’s reasonable to assume there is more to come. A reminder that TKH recently decided to embark on a huge divestment program, intending to divest Digitization, Electrification and other (non-core) businesses. This is a pretty big deal, with proceeds potentially generating €600-700m, most of which are expected to be invested in buybacks.UPDATE (September 8, 2026) All proposals were approved in the recent EGM, including the new CEO being appointed as of Jan 1, and more interestingly, the separation of the Electrification business (still dual-track atm), which is enjoying increasingly stronger markets. After a few tough years TKH seems to have it all under control again and is ready for the next leg of growth. ToffCap wrote this one up last year; let us know if interested and we can arrange for the paywall to be dropped.
- UPM-Kymmene (UPM FH). The spin of the smaller UPM Plywood units is progressing, with UPM first time reporting it as discontinued operations (that’s the IFRS way). Spin still on track for Oct 31. A reminder here that this thing might be interesting given quite the smaller size and different business vs the rest of the business. Adding to that is that basically every unit’s (roughly 6) businesses are sucking at the moment. We could see a REALLY big dump in the shares here.UPDATE (September 8, 2026) The spin of WISA has been approved and is on track for Oct. 31. For those interested, there will be a Capital Markets Day on September 23. See our previous comments why this one could be interesting…