Icahn just bought a large stake in Bausch Health and sounds like they want to spin off the eye health division via a possible SPAC merger. Icahn owns half of $ENZN!
) PROCEED WITH PACE: The spin-off should be completed by year-end 2021.
In order to facilitate the spin-off of Bausch Global Eyecare as an investment grade Company, we recommend Bausch Health Companies retain a globally recognized investment banking firm to seek capital for an up to a 40% equity stake in BGE prior to its spin-off. To be clear, we are recommending raising capital by selling a stake in the eyecare subsidiary, BGE, at fair value, and we specifically recommend against selling any equity in the current holding company, BHC, whose fair value is meaningfully higher than its current share price, in our opinion. This fresh capital would allow for the creation of an investment grade BGE at inception while beginning to improve the credit ratios of the remainder of Bausch Health Companies. We believe this capital could come from a SPAC merger partner, private equity firm, leading North American or global investment institutions or the IPO market.
