Holding Companies Report - Makor’s Monitor
Ø New holding company in the portfolio- We are expanding the portfolio to include a number of non-European holding structures which we find interesting to monitor. This week we are adding SINA CORP (SINA: US), a Chinese online media company that operates one of China’s top web portals, and holds 51% stake in Weibo - the Chinese Twitter (WB: US). Both companies trade on NASDAQ. The stake in Weibo comprises ~85% of SINA’s gross assets and ~100% of its market cap. For more details and NAV model see page 2.
Key highlights from the past two weeks:
Ø PARG: SW /GBLB: BB spreadcontinued to widen by another ~1% ahead of the redemption of the convertible bonds on Sep 27 (our trade has yielded ~4.5% by now).
Ø CDI /LVMH spread which we pointed out reaching an interesting level in our latest report tightened by ~2% and is now trading at ~14.4%.
Ø Wendel (MF: FP) discount also tightened by over 2.5% on the back of positive 1H results. The company will hold an investor day and strategy presentation on Dec 1, 2016.
Ø Exor SPA (EXO: IM) –On Sep 4 the company’s EGM approved the cross border merger between Exor and Exor NV and the transfer of the registered office of the company to Holland. We continue to see the current spread level tight with limited upside potential. More details on the merger and updated NAV on page 4.
Full report attached!