Reuters FedEx announced the muchanticipated spinoff of its freight trucking division on Thursday, as it restructures operations to focus on its core delivery business.

Shares jumped 8 in afterhours trading, adding 5 billion to FedEx39;s market capitalization.

Analysts believe the spinoff could unlock up to 20 billion in shareholder value, while clearing the way for FedEx management to zero in on merging operations of its separate Express and Ground units to boost profits. They say FedEx Freight assets were not fully appreciated within FedEx and that spinning off the trucking business as a publiclyheld entity will provide an opportunity to expand and improve its operations.

Freight is one of FedEx39;s most profitable businesses, said Edward Jones analyst Faisal Hersi. The company trades at a relative discount to its publicly held trucking rivals like XPO and Old Dominion, meaning that making it an independent company will create value for investors, he said.

We are encouraged that the company listened to shareholder feedback and is pursuing this route, Stephens analyst Daniel Imbro said of the spinoff.

FedEx Freight is the largest U.S. provider of lessthantruckload services, which involve carrying multiple shipments from different customers on a single truck; the shipments are then routed through a network of service centers where they get transferred to other trucks with similar destinations. The unit39;s revenue fell 11 to 2.17 billion during the fiscal second…