NEW YORK (TheStreet) -- Shares of Exterran Holdings Inc. (EXH) are higher by 8.59% to $36.67 in mid-morning trading on Monday, after the company announced its plan to spin off its international and fabrication businesses into a new publicly traded company, "SpinCo."
The new company's businesses will consist of Exterran Holdings' current international contract operations, and aftermarket services business, the company said.
After the transaction is completed Exterran Holdings, "RemainCo," will be a "pre-play U.S. compression services business," holding interests in Exterran Partners L.P. (EXLP) , the company added.
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"This transaction is an extension of our efforts to enhance the performance and unlock the value of all the businesses in the Exterran Holdings portfolio and is consistent with the board of directors' commitment to create long-term, sustainable shareholder value," said Exterran Holdings' CEO Brad Childers.
"We believe creating two separate entities, each focused on its unique performance improvement and growth initiatives, will further enhance the competitive position of each business in the U.S. and global oil and gas production infrastructure markets," Childers added.
The company said it expects the spinoff to take place during the second half of 2015.
Separately, TheStreet Ratings team rates EXTERRAN HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: