Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Havas is a recent spin-off from Vivendi.</li><li>Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all-time high adjusted EBIT of €338 million (12.4% margin).</li><li>The company exited 2024 in a net cash position of €211 million, providing a strong balance sheet to fund growth and shareholder returns.</li></ul>

Havas is a recent spin-off from Vivendi.Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all-time high adjusted EBIT of €338 million (12.4% margin).The company exited 2024 in a net cash position of €211 million, providing a strong balance sheet to fund growth and shareholder returns.

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>Discounts to NAV of covered holdcos didn't show a clear trend during March. Discounts: C.F.Alba, 14.9% as of 31 March (vs 14.1% as of 28 February); GBL, 37.6% (vs. 38.7%);</li>
<li>Heineken Holding, 11.2% (vs. 13%); Industrivärden C, 2.9% (vs. 5.1%); Investor B, 4.2% (vs. 2.3%); Porsche Automobile Holding, 31.9% (vs. 38.1%); Rio DLC 21.7% (vs. 17%). Vivendi 40.1% (vs. 38.7%). </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 show a clear trend during March. Discounts: C.F.Alba, 14.9% as of 31 March (vs 14.1% as of 28 February); GBL, 37.6% (vs. 38.7%);
Heineken Holding, 11.2% (vs. 13%); Industrivärden C, 2.9% (vs. 5.1%); Investor B, 4.2% (vs. 2.3%); Porsche Automobile Holding, 31.9% (vs. 38.1%); Rio DLC 21.7% (vs. 17%). Vivendi 40.1% (vs. 38.7%). 
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: March 2025 Report, Adding Vivendi

<ul>
<li>Since mid-February, with sessions of massive volatility, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (12 have tightened, 5 widened, 1 at same level).</li>
<li>Discont of Carlsberg B has never been this low (5.7%) since the pandemic; Handelsbanken B shares trade at 35.5% premium to A shares (after widening to 60.4%). </li>
<li>Recommended trades long preferred / short ordinary shares: Atlas Copco, BMW, Grifols, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.</li>
</ul>


Since mid-February, with sessions of massive volatility, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (12 have tightened, 5 widened, 1 at same level).
Discont of Carlsberg B has never been this low (5.7%) since the pandemic; Handelsbanken B shares trade at 35.5% premium to A shares (after widening to 60.4%). 
Recommended trades long preferred / short ordinary shares: Atlas Copco, BMW, Grifols, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.


Liquid Universe of European Ordinary and Preferred Shares: March '25 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>
There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.
</li>
<li>
Aptiv PLC (APTV), an automotive technology supplier, announced on January 22, 2025, that it plans to split into two distinct companies.
</li>
<li>
Aptiv will spin-off its electrical systems business. The RemainCo will concentrate on technological components, including sensor-to-cloud solutions and autonomous driving software.
</li>
</ul>



There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.


Aptiv PLC (APTV), an automotive technology supplier, announced on January 22, 2025, that it plans to split into two distinct companies.


Aptiv will spin-off its electrical systems business. The RemainCo will concentrate on technological components, including sensor-to-cloud solutions and autonomous driving software.



Weekly Update (APTV, MRP, MEDXF, AAF, WDC)

France

Vivendi SE provides culture, entertainment, media, and communication services. The Company specializes in audiovisual and cinema, communications, magazines, gaming, live performance, and distribution platform activities. Vivendi serves customers worldwide.

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Vivendi SE (VIV FP)

[Alert] Buy Havas

Havas is a recent spin-off from Vivendi. Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all...

Richard Howe

Selected European HoldCos and DLC: March 2025 Report, Adding Vivendi

March discounts to NAV of covered holdcos showed no clear trend. Interesting points include Porsche SE vs. listed assets and Rio DLC (long RIO LN...

Jesus Rodriguez Aguilar

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

European share-price spreads have generally tightened since mid-February, with volatility; Carlsberg B discount at 5-year record low,...

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

Weekly Update (APTV, MRP, MEDXF, AAF, WDC)

There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.

Richard Howe

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Alert] Buy Havas

Havas is a recent spin-off from Vivendi. Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all...

Richard Howe

Selected European HoldCos and DLC: March 2025 Report, Adding Vivendi

​March discounts to NAV of covered holdcos showed no clear trend. Interesting points include Porsche SE vs. listed assets and Rio DLC (long RIO LN...

Jesus Rodriguez Aguilar

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

​European share-price spreads have generally tightened since mid-February, with volatility; Carlsberg B discount at 5-year record low,...

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

Weekly Update (APTV, MRP, MEDXF, AAF, WDC)

There were no new spin-off announcements this week, but I’ve done some more work on the Aptiv (APTV) spin-off announcement.

Richard Howe

Havas is a recent spin-off from Vivendi. Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all...

March discounts to NAV of covered holdcos showed no clear trend. Interesting points include Porsche SE vs. listed assets and Rio DLC (long RIO LN...

European share-price spreads have generally tightened since mid-February, with volatility; Carlsberg B discount at 5-year record low,...