European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Discounts to NAV of covered holdcos have shown mixed performance during March, with spreads widening until short after the UBS/CS deal, now tightening. </li>
<li>Discounts to NAV: C.F.Alba, 51.2%; GBL, 35.8%; Heineken Holding, 14.6%; Industrivärden C, 11.1%; Investor B, 9.7%; Porsche Automobile Holding, 49.6%. The spread of Rio Tinto DLC widened to 18.9%.</li>
<li>Recommended trades: Heineken Holding, Investor AB (long Investor B/short main holdings) and Rio DLC.</li>
</ul>


Discounts to NAV of covered holdcos have shown mixed performance during March, with spreads widening until short after the UBS/CS deal, now tightening. 
Discounts to NAV: C.F.Alba, 51.2%; GBL, 35.8%; Heineken Holding, 14.6%; Industrivärden C, 11.1%; Investor B, 9.7%; Porsche Automobile Holding, 49.6%. The spread of Rio Tinto DLC widened to 18.9%.
Recommended trades: Heineken Holding, Investor AB (long Investor B/short main holdings) and Rio DLC.


Selected European HoldCos and DLC: March'23 Report

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>One may presume that <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> moved their <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> shares received from their non-CCASS holdings of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>. It does not tell us much else. </li>
<li>Allocation in the <a href="https://www.smartkarma.com/entities/s-m-entertainment-co" target="_blank" data-smartkarma-citation="entities:3500:1" rel="noopener">S.M.Entertainment Co (041510 KS)</a> partial Offer was 44.14%. With shares trading ~₩95k, that was a pretty good outcome. </li>
<li>
<a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> has asked the Japanese government to investigate YFO's alleged breaches of FEFTA. Expect YFO to say they did no wrong. Expect Toyo to complain about it. </li>
</ul>


One may presume that Prosus (PRX NA) moved their Meituan (3690 HK) shares received from their non-CCASS holdings of Tencent (700 HK). It does not tell us much else. 
Allocation in the S.M.Entertainment Co (041510 KS) partial Offer was 44.14%. With shares trading ~₩95k, that was a pretty good outcome. 

Toyo Construction (1890 JP) has asked the Japanese government to investigate YFO's alleged breaches of FEFTA. Expect YFO to say they did no wrong. Expect Toyo to complain about it. 


Last Week in Event SPACE: Meituan, S.M.Entertainment, Toyo, Mincor, JD.com, AAG

Groupe Bruxelles Lambert Sa / Event-Driven

<ul>
<li>Concentrix has signed a deal to merge with Webhelp (unlisted) in a cash and shares deal worth roughly $4.8 billion, including net debt. Webhelp is 59.15% owned by GBL.</li>
<li>GBL obtains €1,787 million (vs. €1,721 million last valuation). GBL doesn't miss on a good deal, even momentarily reversing the trend of increasing share of private assets in portfolio.</li>
<li>The discount, albeit recently tightening, stays at a high level, 36.9%, despite the good deal and higher portfolio visibility and cash holdings.</li>
</ul>


Concentrix has signed a deal to merge with Webhelp (unlisted) in a cash and shares deal worth roughly $4.8 billion, including net debt. Webhelp is 59.15% owned by GBL.
GBL obtains €1,787 million (vs. €1,721 million last valuation). GBL doesn't miss on a good deal, even momentarily reversing the trend of increasing share of private assets in portfolio.
The discount, albeit recently tightening, stays at a high level, 36.9%, despite the good deal and higher portfolio visibility and cash holdings.


<ul>
<li>NAV/Share down 19% for FY2022 in line with falls in the market. Private/alternative assets represented 36.3% of GAV and 39.86% of NAV. Discount to NAV was 35.8% as of YE2022.</li>
<li>The discount to NAV was 36.7% as of 10 March. GBL is buying and cancelling its own shares, which creates value as it's done at a deep discount to NAV.</li>
<li>GBL has completed its transition towards a 40% of private/alternative assets in portfolio, but still needs to convince investors to lower its discount to levels closer to Investor AB. </li>
</ul>


NAV/Share down 19% for FY2022 in line with falls in the market. Private/alternative assets represented 36.3% of GAV and 39.86% of NAV. Discount to NAV was 35.8% as of YE2022.
The discount to NAV was 36.7% as of 10 March. GBL is buying and cancelling its own shares, which creates value as it's done at a deep discount to NAV.
GBL has completed its transition towards a 40% of private/alternative assets in portfolio, but still needs to convince investors to lower its discount to levels closer to Investor AB. 


<ul>
<li>Discounts to NAV of covered holdcos have generally tightened during February. Discounts to NAV: C.F.Alba, 53.2%; GBL, 34.9%; Heineken Holding, 16.1%; Industrivärden C, 10.6%; </li>
<li>Investor B, 11.2%; Porsche Automobile Holding, 50.5%. The spread of Rio Tinto DLC tightened to 12.6%. Spreads tend to tighten in favourable market conditions.</li>
<li>Recommended trades are: GBL, Heineken Holding, Porsche Automobile Holding, and possibly CF Alba (long).</li>
</ul>


Discounts to NAV of covered holdcos have generally tightened during February. Discounts to NAV: C.F.Alba, 53.2%; GBL, 34.9%; Heineken Holding, 16.1%; Industrivärden C, 10.6%; 
Investor B, 11.2%; Porsche Automobile Holding, 50.5%. The spread of Rio Tinto DLC tightened to 12.6%. Spreads tend to tighten in favourable market conditions.
Recommended trades are: GBL, Heineken Holding, Porsche Automobile Holding, and possibly CF Alba (long).


Selected European Holdcos and DLC: February‘23 Report

Belgium

Groupe Bruxelles Lambert S.A. is a holding company with interests in energy, media, and utility companies.  The Company, through its subsidiaries, produces petroleum, manufactures chemicals, operates gasoline filling stations, owns and operates television and radio stations, supplies water, generates and transports electricity, transports natural gas, and offers waste management services.

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Groupe Bruxelles Lambert Sa (GBLB BB)

Selected European HoldCos and DLC: March'23 Report

Discounts to NAV of covered holdcos have shown mixed performance during March, with spreads sharply widening until short after the UBS/CS deal, now...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Meituan, S.M.Entertainment, Toyo, Mincor, JD.com, AAG

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Concentrix/Webhelp: A Good Deal for GBL

Concentrix has signed a deal to merge with Webhelp (unlisted) in a cash and shares deal worth roughly $4.8 billion, including net debt. Webhelp is...

Jesus Rodriguez Aguilar

FY2022 Results and Discount to NAV

The discount is at a historical high level, and it has been relatively high since the pandemic broke. Probably investors are missing more defensive...

Jesus Rodriguez Aguilar

Selected European Holdcos and DLC: February‘23 Report

Discounts to NAV of covered holdcos have generally tightened during February. Recommended trades are: GBL, Heineken Holding, Porsche Automobile...

Jesus Rodriguez Aguilar

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