D.E. Shaw spots an opportunity to boost margins at FleetCor – and do so amicably
Publishing timestamp: 2023-04-01 07:53:05
Summary
D.E. Shaw, a large multi-strategy fund, has entered into an agreement with FleetCor Technologies to appoint a new director to the board and form an ad hoc strategic review committee to explore possible separation of one or more of FleetCor's businesses, including its fuel business. FleetCor operates through six segments, including fuel, corporate payments, tolls, lodging, gift, and other. While the fuel business has traditionally comprised almost 50% of its revenues, the company has been working to incorporate the transition toward electric vehicles into its future business strategy. Despite this, the company is trading at a discount to peers due to the perception that it is mainly a fuel-reliant business with secular headwinds. Separating the fuel business could remove this perception and allow the high-growth and high-EBITDA businesses to get a re-rating from the transaction.
Sentiment: MIXED
Tickers: FLT,
Keywords: investment strategy, business news, hedge funds, fleetcor technologies inc,
Source: https://www.cnbc.com/2023/04/01/de-shaw-spots-an-opportunity-to-boost-margins-at-fleetcor.html