Pallets, crates and containers business Brambles is splitting with its data management business Recall, forming it into a separate listed company.
The demerger comes as Brambles scrapped plans last year to sell the subsidiary. It had hoped to raise $2 billion from the sale of the business, but last June it fell through with the company blaming market conditions.
Recall Holdings is expected to be listed on the Australian Securities Exchange in December.
Brambles shareholders will receive new shares in Recall proportionate to their existing Brambles shareholding, while also retaining their current shares, the company said in a statement to the ASX this morning.
At midday, shares in Brambles had climbed 1.54% to $9.22 following the announcement.
Online sales growth slows in May, NAB index reveals
Online sales grew by 18% year-on-year in May, according to the latest results from NAB’s monthly index.
The result is a slowdown from the previous month in terms of growth, slowing from 24% to 18%, but the actual index is higher, rising from 211 to 218 points.
The results show Australians spent $13.7 billion on online retailers in May, equivalent to 6.1% of the spending in traditional bricks and mortar.
“In contrast, the rate of growth for traditional bricks & mortar retail was marginally stronger in April 2013 – increasing by +3.2% year-on-year (on a non-seasonally adjusted basis), compared with +2.4% year on year in March,” NAB said in a statement.
“That said, when seasonal factors are included, the growth trend for traditional retail was flat at +3.0% year on year in April.”
NAB said the slowdown in sales could be due to a boost in April, surrounding Mother’s Day and the “Click Frenzy” promotion.
Shares up on open
Australian shares rose up open this morning, following gains in the United States and positive manufacturing data out of Europe.
The S&P/ASX200 was up 63.6 points to 4773.9 just after midday.
Out of the S&P/ASX top 50 companies, all businesses except NAB recorded gains and Rio Tinto was up $1.03.