European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Discounts to NAV of covered holdcos didn't follow a clear trend during February 2025. Discounts to NAV: C.F.Alba, 14.1% (vs. 12.9% as of 31 January 2025); GBL, 38.7% (vs. 40%);</li>
<li>Heineken Holding, 13% (vs. 13.2%); Industrivärden C, 5.1% (vs. 3.0%); Investor B, 2.3% (vs. 4.5%); Porsche Automobile Holding, 38.1% (vs. 36%). Rio DLC spread tightened to 17% (vs. 20.3%).</li>
<li>What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).</li>
</ul>


Discounts to NAV of covered holdcos didn't follow a clear trend during February 2025. Discounts to NAV: C.F.Alba, 14.1% (vs. 12.9% as of 31 January 2025); GBL, 38.7% (vs. 40%);
Heineken Holding, 13% (vs. 13.2%); Industrivärden C, 5.1% (vs. 3.0%); Investor B, 2.3% (vs. 4.5%); Porsche Automobile Holding, 38.1% (vs. 36%). Rio DLC spread tightened to 17% (vs. 20.3%).
What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).


Selected European HoldCos and DLC: February 2025 Report

<ul>
<li>Since mid-January, share-price spreads have generally widened across European liquid universe of ordinary and preferred shares (11 have widened, 3 tightened, 4 at same level).</li>
<li>Telecom Italia savers sharply reduced their premium to ords to 12% (vs. 18.5%); Handelsbanken B shares trade at 39.9% premium to A shares.</li>
<li>Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal, Telecom Italia.</li>
</ul>


Since mid-January, share-price spreads have generally widened across European liquid universe of ordinary and preferred shares (11 have widened, 3 tightened, 4 at same level).
Telecom Italia savers sharply reduced their premium to ords to 12% (vs. 18.5%); Handelsbanken B shares trade at 39.9% premium to A shares.
Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal, Telecom Italia.


Liquid Universe of European Ordinary and Preferred Shares: February'25 Report

<ul>
<li>NAV of <a href="https://www.smartkarma.com/entities/industrivarden-ab-8f0a0f6c-a595-41f6-a032-9b4820474704" target="_blank" data-smartkarma-citation="entities:43732:1" rel="noopener">Industrivarden (INDUC SS)</a> was c. SEK 160 bn (SEK 370/share) on December 31. NAV increased by 6% during FY 2024. 5-Y total return 78% (OMX30, 64%).</li>
<li>Industrivärden C shares are trading at a 3.9% discount to NAV (vs. 7.4% average for last 5-years). It seems risky to bet on a further discount reduction, rather a reversal.</li>
<li>My target NAV is SEK 171 bn. My TP for the C shares of Industrivärden, assuming a 5% discount to NAV, is SEK 376.5 (4.5% downside).</li>
</ul>


NAV of Industrivarden (INDUC SS) was c. SEK 160 bn (SEK 370/share) on December 31. NAV increased by 6% during FY 2024. 5-Y total return 78% (OMX30, 64%).
Industrivärden C shares are trading at a 3.9% discount to NAV (vs. 7.4% average for last 5-years). It seems risky to bet on a further discount reduction, rather a reversal.
My target NAV is SEK 171 bn. My TP for the C shares of Industrivärden, assuming a 5% discount to NAV, is SEK 376.5 (4.5% downside).


Industrivärden's FY 2024: NAV Evolution, Discount, Target NAV, Replication

<ul>
<li>Discounts to NAV of covered holdcos mainly tightened during January 2025. Discounts to NAV: C.F.Alba, 12.9% (vs. 11.8% as of 31 December 2024); GBL, 40% (vs. 40.9%);</li>
<li>Heineken Holding, 13.2% (vs. 15.8%); Industrivärden C, 3.0% (vs. 5.5%); Investor B, 4.5% (vs. 7.6%); Porsche Automobile Holding, 36% (vs. 32.2%). Rio DLC spread tightened to 20.3% (vs. 23%).</li>
<li>What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).</li>
</ul>


Discounts to NAV of covered holdcos mainly tightened during January 2025. Discounts to NAV: C.F.Alba, 12.9% (vs. 11.8% as of 31 December 2024); GBL, 40% (vs. 40.9%);
Heineken Holding, 13.2% (vs. 15.8%); Industrivärden C, 3.0% (vs. 5.5%); Investor B, 4.5% (vs. 7.6%); Porsche Automobile Holding, 36% (vs. 32.2%). Rio DLC spread tightened to 20.3% (vs. 23%).
What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).


Selected European HoldCos and DLC: January 2025 Report

<ul>
<li>Since mid-December, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (8 have widened, 11 tightened) with few changes in the trends.</li>
<li>Telecom Italia savers are trading at 18.5% premium to ords; Handelsbanken B at 32.4% premium to A. The discount of Grifols B has tightened, some await a comeback from Brookfield. </li>
<li>Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, Roche, SSAB Svenska Stal, Telecom Italia.</li>
</ul>


Since mid-December, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (8 have widened, 11 tightened) with few changes in the trends.
Telecom Italia savers are trading at 18.5% premium to ords; Handelsbanken B at 32.4% premium to A. The discount of Grifols B has tightened, some await a comeback from Brookfield. 
Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, Roche, SSAB Svenska Stal, Telecom Italia.


Liquid Universe of European Ordinary and Preferred Shares: January'25 Report

Sweden

Industrivarden AB is an investment company.  The Company's holdings consists of a portfolio of listed Nordic industrial companies.

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Industrivarden AB (INDUA SS)

Selected European HoldCos and DLC: February 2025 Report

February 2025 saw varying discounts to NAV for covered holdcos, with some tightening and others widening, highlighting opportunities in Porsche SE...

Jesus Rodriguez Aguilar

Liquid Universe of European Ordinary and Preferred Shares: February'25 Report

Since mid-January, share-price spreads have generally widened across European liquid universe of ordinary and preferred shares (11 have widened, 3...

Jesus Rodriguez Aguilar

Industrivärden's FY 2024: NAV Evolution, Discount, Target NAV, Replication

Industrivarden's NAV increased by 6% in FY 2024, with a target NAV of SEK 171 bn. C shares trading at a 3.9% discount to NAV, TP for C shares at...

Jesus Rodriguez Aguilar

Selected European HoldCos and DLC: January 2025 Report

Discounts to NAV of covered holdcos mainly tightened during January 2025. What seems interesting (unchanged views): Porsche SE vs. listed assets...

Jesus Rodriguez Aguilar

Liquid Universe of European Ordinary and Preferred Shares: January'25 Report

Since mid-December, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (8 have widened,...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Selected European HoldCos and DLC: February 2025 Report

​February 2025 saw varying discounts to NAV for covered holdcos, with some tightening and others widening, highlighting opportunities in Porsche SE...

Jesus Rodriguez Aguilar

Liquid Universe of European Ordinary and Preferred Shares: February'25 Report

Since mid-January, share-price spreads have generally widened across European liquid universe of ordinary and preferred shares (11 have widened, 3...

Jesus Rodriguez Aguilar

Industrivärden's FY 2024: NAV Evolution, Discount, Target NAV, Replication

​Industrivarden's NAV increased by 6% in FY 2024, with a target NAV of SEK 171 bn. C shares trading at a 3.9% discount to NAV, TP for C shares at...

Jesus Rodriguez Aguilar

Selected European HoldCos and DLC: January 2025 Report

Discounts to NAV of covered holdcos mainly tightened during January 2025. What seems interesting (unchanged views): Porsche SE vs. listed assets...

Jesus Rodriguez Aguilar

Liquid Universe of European Ordinary and Preferred Shares: January'25 Report

Since mid-December, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (8 have widened,...

Jesus Rodriguez Aguilar

February 2025 saw varying discounts to NAV for covered holdcos, with some tightening and others widening, highlighting opportunities in Porsche SE...

Industrivarden's NAV increased by 6% in FY 2024, with a target NAV of SEK 171 bn. C shares trading at a 3.9% discount to NAV, TP for C shares at...