La Lettre A : LVMH : la holding médias et immobilier en déficit de 220 millions

LVMH : la holding médias et immobilier en déficit de 220 millions d'euros

Ufipar, véhicule financier qui possède des médias comme Le Parisien et Les Echos, ainsi que des actifs immobiliers et un palace du groupe LVMH à Saint-Barth, voit son déficit se creuser depuis trois ans. La majorité des sociétés qu'il détient à plus de 50 % ont connu des pertes en 2020.
Parmi les gros bailleurs de fonds du groupe LVMH, la société Ufipar vient de déposer des comptes 2020 au greffe. Dirigée par Jean-Jacques Guiony, grand manitou des finances du groupe de luxe depuis près de vingt ans, cette holding apporte des fonds aux sociétés gérées en participation et a dû procéder à une dépréciation d'actifs de 92 millions d'euros l'an dernier. En conséquence, ses réserves ont encore fondu avec un déficit de 82 millions d'euros sur l'exercice 2020.

Compte tenu des pertes cumulées de 138 millions d'euros en 2019, la holding enregistre désormais un déficit cumulé de 220 millions d'euros. La seule entité gérée en participation à avoir fait remonter des dividendes l'an dernier - pour un montant de 10 millions d'euros - est la Société Montaigne Jean Goujon. Parmi les onze actifs détenus à plus de 50 % par Ufipar, il s'agit du seul à ne pas avoir été dans le rouge en 2020.

Lourde perte pour Le Parisien
Alors qu'Ufipar avait été recapitalisé début 2019 (LLA du 15/02/19), à hauteur de 440 millions d'euros par son actionnaire à 100 % LVMH Finance - rebaptisé LVMH Miscellanées l'an dernier - ses filiales détenues de façon majoritaire n'ont pas fini de quémander des fonds. Les deux plus importantes capitalisations appartiennent au pôle média, constitué de Groupe Les Echos et du Parisien Libéré SAS. La société éditrice du Parisien-Aujourd'hui en France, présidée par Pierre Louette, n'a pas déposé ses comptes depuis 2017. Toutefois, ceux d'Ufipar permettent de constater que le quotidien a enregistré une lourde perte de 47,9 millions d'euros l'an dernier, pour un chiffre d'affaires de 139,9 millions d'euros.

Quant à Team Media, la société abritant la régie publicitaire du groupe Les Echos-Le Parisien - renommée Les Echos Le Parisien Médias - elle s'est vue injecter 2,4 millions d'euros dans le cadre d'une augmentation de capital (LLA du 22/08/19). Si le groupe LVMH réfléchit depuis trois ans à regrouper ses activités médias dans une même holding, il n'a toujours pas concrétisé son projet.

Parmi le portefeuille d'Ufipar, figurent également quelques actifs immobiliers comme le Jardin d'acclimatation et la société Investissement hôtelier Saint-Barth plage des Flamands (IHSBPF), devenu Cheval Blanc Saint-Tropez SAS en 2020. Dirigé par Olivier Lefebvre, cet ensemble immobilier et ses 60 bungalows de haut standing se situent à deux pas de la baie des Flamands, réputée pour être la plus belle plage de Saint-Barthélemy, l'île des stars aux Caraïbes. Ufipar lui a accordé un prêt de 50 millions d'euros pour la réalisation de conséquents travaux l'an dernier, via sa filiale Alderande. Touché par la pandémie, l'établissement a enregistré une perte de 1,2 million d'euros sur son dernier exercice.

Une banque interne en Belgique
A l'arrivée, le portefeuille brut d'Ufipar, valorisé 2,1 milliards d'euros, ne pèse cependant que 1,3 milliard d'euros, compte tenu des dépréciations orchestrées par sa direction. La holding a par ailleurs une dette financière intragroupe du même montant (1,3 milliard d'euros) - un hasard - constituée d'un encours auprès de la société effectuant une gestion centralisée de la trésorerie (cash pooling) pour toutes les entités du groupe LVMH, en France comme à l'étranger. Si l'entité n'est pas nommée dans les comptes, il s'agit d'une société basée à Bruxelles nommée LVMH Finance Belgique (LLA du 22/08/18).

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • JOAN -13.8%, YEXT -11.9%, NX -6.6%, LAW -5.9%, COO -1.3%, HPE -0.8%

Other news:

  • FBRX -79.7% (top-line data from Phase 2 trial of FB-401 fails to meet statistical significance)
  • ANY -28.3% (entered into a securities purchase agreement with institutional investors to purchase $192.1 million of its common shares and warrants in a registered direct offering priced at-the-market)
  • INVH -1.5% (provides July and August leasing updates)
  • MQ -1.1% (Marqeta and Chief Product Officer Kevin Doerr mutually agreed to end their employment relationship effective September 10)
  • BYND -1% (COO steps down)
  • SGOC -0.8% (stock offering)

Analyst comments:

  • MNRL -1.3% (downgraded to Equal Weight from Overweight at Wells Fargo)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • PD +14.1%, MDB +13.9%, OXM +8%, OOMA +6.4% (also names new CFO), GWRE +5.5%, CTLP +5.3%, SAIC +3.1%, AVGO +0.8%

Other news:

  • APOP +72.2% (reports first ApoGraft transplantation in Leukemia patient in clinical trial)
  • SUPN +2.8% (reports FDA has received sNDA for Qelbree)
  • REAL +2.4% (provides monthly business update)
  • NMM +2% (MRMP Amends 13D; Sends Follow-Up Letter to Navios Maritime Partners)
  • MARA +1.8% (provides production and mining updates for August)
  • CSWC +1.7% (increases dividend)
  • SAVA +1.6% (releases a public statement regarding recent allegations)
  • ASH +1.3% (enters into accelerated share repurchase to repurchase an aggregate of $450 mln common stock)
  • WDC +1.3% (Kioxia Holdings wants to move forward with IPO instead of stock merger with WDC)

Analyst comments:

  • IPHA +6.9% (upgraded to Outperform from Mkt Perform at SVB Leerink)
  • BSM +1.3% (upgraded to Overweight from Equal Weight at Wells Fargo)
  • BAX +0.8% (upgraded to Overweight from Equal Weight at Barclays)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • APOP +53.8%, PD +13.5%, MDB +13.3%, GWRE +7.6%, OXM +7.1%, CTLP +5.3%, SAIC +3.1%, SUPN +2.8%, MARA +2.7%, CSWC +1.8%, REAL +1.7%, LQDA +1.1%, AVGO +1%, SHO +0.8%, OOMA +0.7%
  • Gapping down:
    • FBRX -81.4%, JOAN -12%, YEXT -11.9%, LAW -7.7%, NX -6.6%, SGOC -3.8%, CRBU -1.4%, BYND -1.3%, MQ -1.3%, COO -1.3%, DOCU -0.6%

FT : Infrastructure investor Antin plans IPO in bid to ride public spending wave

Infrastructure investor Antin plans IPO in bid to ride public spending wave
Paris-based private equity firm seeks to raise €350m in Paris listing

Infrastructure investment firm Antin plans to list in Paris as it seeks to capitalise on a looming public spending boom in wealthier nations.

The Paris-based private equity investor said on Friday it was considering a capital increase of about €350m through the issuance of new shares, as well as a limited sale of existing shares held by its co-founders.

Antin’s management would retain the majority of shares and remain “strongly committed” to the company following the initial public offering. 

“Since its inception in 2007, Antin Infrastructure Partners has played a pioneering role in developing infrastructure as an asset class,” said Alain Rauscher and Mark Crosbie, co-founders and managing partners. “As many OECD countries are on the cusp of a major step change in infrastructure investment, Antin is well-positioned to leverage its expertise and innovative strategies to seize these market opportunities.”

Antin manages four funds that invest in infrastructure in Europe and North America, with a focus on the energy and environment, telecommunications, transportation and social sectors.

The firm has raised approximately €17bn of capital since its inception, with holdings in UK telecoms group CityFibre and UK motorway services operator RoadChef.

It expects earnings before interest, tax, depreciation and amortisation to reach €92m this year after one-off IPO transaction costs of about €16m, down from €132m in 2020.

Net income is expected to reach approximately €60m, down from €93m.

Antin’s statement stressed that its responsible investment policy was framed around the six UN principles for responsible investment. 

(ZH) President Xi Announces New Stock Exchange For SMEs In Beijing

President Xi Announces New Stock Exchange For SMEs In Beijing

As Beijing pressures domestic companies to launch their IPOs on domestic exchanges instead of New York or Hong Kong, Beijing announced Thursday that it's preparing to open a new stock exchange in Beijing that will host shares of "innovation-focused" small and medium-sized industries.

The new exchange will join China's other exchanges in Shanghai and Shenzen. Reuters first reported that a new exchange was being discussed as a strategy to strengthen China's capital markets, as financial authorities are being forced to rein in debt levels and shift their focus to equity financing instead.

President Xi announced the new exchange during a video address at the China International Fair for Trade in Services on Thursday. In other comments he pledged that China would "create more possibilities for cooperation by scaling up support for the growth of the services sector in Belt and Road countries."

He plans to accomplish this "by deepening the reform of the New Third Board and setting up the Beijing stock exchange as the primary platform serving innovation-oriented SMEs.'"

Following Xi's statement, China's securities regulator issued a statement affirming that a stock exchange in Beijing would help deepen financial supply-side structural reforms and improve capital market systems. The China Securities Regulatory Commission (CSRC) said its leadership was "excited" at the prospect, would study the president's proposal in depth and resolutely implement it. "Small and medium-sized enterprises can do great things," the CSRC said.

The announcement comes at a time when the future of Chinese firms listing in the US is in doubt. The SEC has paused all applications from Chinese firms until they agree to meet heightened American auditing standards which Beijing has adamantly opposed, per the FT.

The launch of the new exchange comes as President Xi’s government has rolled out a series of regulatory and policy reforms in recent weeks. A crackdown that initially targeted fintech lending and antitrust and personal data abuses has expanded to embroil companies across the economy, from education and gaming to ride-hailing and food deliveries. During his speech, Xi also focused on his plans to benefit the "common prosperity", which benefited from a $15 billion pledge from Alibaba. This is the refocus on the "redistribution of wealth" that President Xi is rolling out (supposedly) to boost the numbers of China's middle class.

They are Communists, after all.

WWD : SMCP Profits Return to Growth in First Half

SMCP Profits Return to Growth in First Half
The fashion group’s sales in the Asia-Pacific region and U.S. exceeded or were back to their pre-pandemic levels in the period.

PARIS – SMCP, the parent company of accessible luxury labels Sandro, Maje, Claudie Pierlot and De Fursac, reported a profit of 600,000 euros, which was up 89 million euros in the first half of 2021 versus the same prior-year period.

“We delivered a solid performance in H1 2021 in all regions, particularly in APAC and in the U.S., where our sales exceeded or were back to their pre-pandemic levels,” said Daniel Lalonde, the outgoing chief of SMCP, in a statement released Friday morning.

As previously reported, Isabelle Guichot was named chief executive officer of SMCP in August. Lalonde, who resigned from the group, will remain there through October to ensure a smooth transition.

SMCP’s earnings before interest and taxes were back in the black, too, at 25.2 million euros, representing a 54.9 million euro gain, thanks to ongoing cost-cutting measures. Adjusted EBITDA grew 81.9 percent to 100.3 million euros.

SMCP sales in the six months ended June 30 advanced 21.6 percent on a reported basis and 23.3 percent on an organic basis to 453.3 million euros, spurred by business around the world. Sales in Mainland China posted double-digit gains – up 24 percent in reported terms and 54.6 percent on an organic basis.

“The momentum observed in the U.S. early this year has been confirmed in the second quarter, going from strength to strength,” said SMCP in the statement.

SMCP was listed on the Paris Stock Exchange in 2017. Chinese textile group Ruyi Group owns around 54 percent of the company.

WSJ : The Rich Rush to Muni Bonds

The Rich Rush to Muni Bonds
As Biden’s tax hikes loom, cities and states see a tax-exempt boom.

The biggest winners of the 2020 election have turned out to be state and local governments, especially those run by Democrats. Democrats in Congress have showered them with federal largesse, and President Biden is now reducing their borrowing costs by driving a stampede of investors into tax-exempt municipal bonds.

Demand for muni debt has surged this year even from last year’s high levels as well-to-do Americans seek protection from the expected income and capital gains tax increases. Investors have plowed a record $69 billion into muni-bond mutual and exchange traded funds during the first seven months of this year, driving yields to historic lows.

The yield on the S&P Municipal Bond Index this summer fell below 1% for the first time and is now about half of what it was two years ago. BlackRock’s California and New York Muni Bond ETFs (which include bonds from municipalities and local public agencies) are yielding 0.83% and 0.86%, respectively, versus 1.29% on the 10-year Treasury.

Try to wrap your head around this: The U.S. government has been issuing hundreds of billions of dollars in debt to help states and localities that are rolling in record tax revenue and can borrow at negative real rates. Now Congress plans to borrow even more for public works that many states could finance more cheaply. Only in Washington does this make any sense.


Munis have become more attractive because their interest is exempt from federal income tax, unlike Treasurys and corporate bonds. Most states also exempt debt issued by their localities from income taxes. This makes muni ETF and mutual funds especially popular among wealthy Americans in states with high tax rates like California and New York.

Now Mr. Biden wants to raise the top income tax rate to 39.6% from 37%. After adding the 3.8% investment tax, couples making more than $509,000 would pay 43.4% on interest income and dividends. High earners currently pay 23.8% on long-term capital gains, but Democrats also want to tax their capital gains as ordinary income.

The tax bill for wealthy Americans in many states could soon exceed 50% on stock sales, dividends and interest income. Tax-exempt munis are a port in this tax storm. Despite the paltry yields on munis, Americans may still net more than they would buying corporate bonds or Treasurys.

The gusher of cash from Congress to the states has also reduced muni-bond risk. Illinois recently received its first credit rating upgrade in more than 20 years, though the state’s spendthrift policies and public-union stranglehold on Springfield haven’t changed. The difference is the federal bailout cash.

The biggest, if unseen, cost of this investment in munis is misallocation of capital. Muni bonds do finance some needed public works improvements. But today’s extraordinary rush to munis means that many investors are looking for tax avoidance rather than investing for higher returns in new ventures or productive private enterprises.

All of this finances bigger government, not the wealth creation that is essential to long-term growth and higher living standards.