These four companies each own a mix of listed and unlisted investments, mostly in Europe, and are all trading on a discount of around 40% to their Net Asset Value:
- Groupe Bruxelles Lambert (GBL)
- Kinnevik AB
- Wendel Group
- Exor N.V.
You can quibble about the valuation of their unlisted investments, but most are trading on less than the value of just their listed securities. The exception is Kinnevik, and that is sitting on 12bn SEK in cash, vs market cap of 24bn SEK and investments of 27bn SEK. For the share price to be too high those unlisted investments would have to be worth less than a third of the number quoted.
Trading at a discount to NAV is normal for these companies. You'd have to go back ~20 years to find a time when GBL traded at roughly NAV. However, their NAV and share price have been drifting gradually further and further apart, and in my opinion the discount is now compelling. Any combination of dividends and share buybacks should deliver exceptional shareholder value over the next couple of decades from this starting point.
I form no judgement about the actual investments the companies hold, and I don't intend to pick and choose between them. On 5th August I invested in GBL (at 65.35 Euros per share) and Kinnevik (at 79.41 SEK per share). On 6th August I invested in Wendel (84.15 Euros per share) and Exor (88.65 Euros per share).
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