The float at ODET is too small for meaningful buybacks, instead they've been buying more shares of Bollore (in addition to Bollores own buybacks).
They'll always trade at some discount, but 60%+ seems excessive. I'm happy to wait, as UMG and the Vivendi group of companies are good businesses to own. The main thing I'm keeping an eye on is how they allocate all of the excess cash at Bollore.
I think for my counry it's 15%. Depends on tax treaties and such. Anyways even if there's some negative tax implications I feel like that's one thing that could really help with closing the gap to fair value.
How are they taking steps to close the NAV discount?
- Buybacks at Vivendi, Bollore, and ODET.
- Simplification of cross-holdings within the group through buyout offers and squeeze-outs
of Compagnie du Cambodge, Financière Moncey and Société Industrielle et Financière de
l'Artois (all upstream of ODET).
- Vivendi split, spinning off Havas, Canal+, and the Louis Hachette Group.
Buybacks at ODET would be interesting, what have they shared on this?
I do feel as though there's a decent chance it will keep trading far below NAV as it has forever basically..
The float at ODET is too small for meaningful buybacks, instead they've been buying more shares of Bollore (in addition to Bollores own buybacks).
They'll always trade at some discount, but 60%+ seems excessive. I'm happy to wait, as UMG and the Vivendi group of companies are good businesses to own. The main thing I'm keeping an eye on is how they allocate all of the excess cash at Bollore.
Oh right. Still, dividends would be another option no? At 25%+ yield it would be hard for them to find a better investment.
I'm not familiar with the tax implications in France. I assume the family would only return cash if it could be done in a tax friendly manner.
I think for my counry it's 15%. Depends on tax treaties and such. Anyways even if there's some negative tax implications I feel like that's one thing that could really help with closing the gap to fair value.