Weekly Update (LBTYA, MEDXF, APTV/VGNT)
April 3, 2026
Our live call starts now!
You can use this Zoom link to join.
Here’s what we will cover:
- New Aptiv / Versigent Investment Case
- I will walk through why I think both companies look attractive and undervalued.
- Upcoming Spin-off: Hexagon / Octave
- I will walk through the upcoming Octave spin-off and why I think it could be interesting.
- Open Recommendations Review
- Will give updates on all open recommendations.
- Q&A
- Open forum for questions.
- Please let me know in advance if there’s anything specific you’d like me to cover.
Weekly Update
If you haven’t already, consider joining our discord channel (included with your paid subscription):
Join Discord Channel (you must create a free discord account to join)
It’s basically a chat room where we discuss what’s going on in the special situation market.
Here are a few things we discussed this week:
- Liberty Global makes progress on delevering ahead of Ziggo Spin-off
- Vote for the most helpful person on discord
- Nice buyback activity for Medexus
Upcoming Spin-off
In late May, Hexagon AB (Nasdaq Stockholm: HEXA B) will spin-off its software business, Octave Intelligence.
Octave (represents ~25% of total company revenue) is a pure-play enterprise software and SaaS business built around helping asset-intensive industries — energy, infrastructure, construction, public safety — design, build, operate, and protect their physical assets. Its core product is an integrated lifecycle intelligence platform spanning four workflow environments (Design, Build, Operate, Protect), underpinned by domain-specific AI. The business generated $1.6B in revenue in 2025, with $1.1B in ARR, 97% gross retention, and 105% net retention — solid SaaS-quality metrics.
I’m still finalizing my valuation work, but based on where comparable companies are trading, this transaction could unlock value (Hexagon trades at 13x EBITDA and 19x earnings) if Octave trades inline with Bentley Systems.
Spin-off Links
5 Spin-Off Stocks That Could Reward Patient Investors in 2026
- Mentions Fedex and Honeywell
10 Recent Spin-off Companies That Hedge Funds Are Piling Into
- Amrize looks interesting.
Recommendations Updates
(1) Liberty Global
The press has reported that Liberty is looking to sell its 50% stake in Wyre for ~$1.2BN. This matters because deleveraging is the key driver of value for the Ziggo spin — leverage currently sits at 6.1x and management has guided to ~4.5x by the time of the spin. A Wyre sale would be a significant step in the right direction.
The valuation setup remains compelling. Liberty has roughly $2.0BN of net cash (~$6/share) and $3.4BN of Liberty Growth assets (~$10/share) — together roughly equal to the entire market cap, implying the market is assigning little to no value to its European telecom operations. At ~8x FCF, Liberty’s Ziggo stake alone could be worth $12–13/share once delevered. I estimate net asset value of roughly $25 per share with several catalysts emerging to close the gap.
(2) Medexus
The big development since my last update is that management has been aggressively repurchasing shares. Per SEDI filings, Medexus bought back ~640,400 shares under its NCIB since late November, with March alone accounting for ~393,100 shares — a notable step-up in pace. Only ~21.5% of the authorization has been used, so there’s plenty of runway remaining.
I continue to think Medexus looks compelling.
Spin-off Calendar
Upcoming Spin-off Calendar | Completed Spin-off Calendar
Current Positioning
(updated once a month)
Hope you had a great week!
Rich
Disclaimer:
Rich Howe, owner of Stock Spin-off Investing (“SSOI”), currently is long IDT, MEDXF, AAF, IAC, UNTC, HGHCF, WDC, MAGN, LION, STRZ, NLOP, BRSL TSE: 3134 TSE: 441A, NATL, ZD, APTV, and VGNT. All expressions of opinion are subject to change without notice. This email is provided for informational purposes. Please do your own due diligence and consult with an investment adviser before buying any stock mentioned on www.stockspinoffinvesting.com.
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