The worst performer on the S&P/ASX 200 Index (ASX: XJO) by some distance on Tuesday is the GrainCorp Ltd (ASX: GNC) share price.
In morning trade the grain exporter's shares are down a massive 56% to $3.06.
Why is the GrainCorp share price crashing lower today?
The catalyst for today's decline is the fact that GrainCorp's demerger of its United Malt business has now become effective and its malt business will be trading on the ASX under the ticker code UMG later today.
This follows the lodging of the orders of the Federal Court of Australia approving the Demerger Scheme with the Australian Securities and Investments Commission on Monday.
United Malt Group Limited (ASX: UMG) shares are due to hit the boards at noon today, initially on a deferred settlement basis.
Why is the United Malt business being spun off?
The GrainCorp board has previously stated its belief that the demerger will unlock significant value for shareholders and create two high quality, agribusiness companies.
Each will have management teams focused on pursuing independent strategies and growth opportunities.
United Malt is now the world's fourth largest independent commercial maltster, with malting houses in Canada, the United States, Australia and the United Kingdom in the growing craft brewing and Scotch whisky sectors. It is also a leading craft malt distributor in North America.
GrainCorp CEO Mark Palmquist said: "We are excited by the opportunity to pursue an independent growth strategy for the Malt Business, underpinned by strong market fundamentals in craft brewing and Scotch whisky and a conservative capital structure."
Also falling heavily on the ASX 200 on Tuesday are the shares of Premier Investments Limited (ASX: PMV) and Virgin Money UK (ASX: VUK). They are down 6% and 14%, respectively, this morning after UK prime minister Boris Johnson ordered the public to stay at home.
