Vishay Intertechnology has announced that it is planning a stock spin-off to separate its measurement and foil resistor businesses into a standalone company that they intend to call Vishay Precision Group. The company notes that they are going to accomplish this by a tax-free stock dividend to existing shareholders. Their reasons are the standard spin-off reasons of allowing management of both the spin-off and the parent company to focus better on their own core businesses.
The Vishay Precision Group’s focus is the design, manufacturing, installation, and maintenance of precision measuring devices. With the Precision Group on its own, Vishay Intertechnology will be left as what they describe as “a pure-play discrete electronic components business comprised of semiconductors and passive components.”