was surging almost 40% early Monday after saying it will spin off its building-products business and sell the other part of the company.
The maker of engineered materials and components for the vehicular-products and building-products markets was recently advancing $14.27 to $51.01.
First, Quanex will spin-off its building-products unit to its shareholders as a standalone company called Quanex Building Products. All Quanex shareholders of record will receive one share of Quanex Building Products for each existing share of Quanex.
Second, immediately following the spinoff, Quanex, consisting principally of the vehicular-products business, will be sold to a unit of Brazil-based steelmaker
for $39.20 a share, valuing the operation at about $1.67 billion.
Quanex Building Products will be completely owned by Quanex shareholders and is expected to trade on the
New York Stock Exchange
, the company said in a press release.
The announcement was made after Quanex's board unanimously approved the two transactions as a result of a strategic review started in May.