Author Topic: ODET.PA - Financière de l'Odet SE  (Read 6674 times)

Spekulatius

  • Hero Member
  • *****
  • Posts: 5432
Re: ODET.PA - Financière de l'Odet SE
« Reply #20 on: January 22, 2020, 06:48:44 PM »
I agree that it aligns shareholder interests but the IMO the key question is there a reason for the discount to close?  If not, by buying ODET.PA vs. BOL.PA you are also betting on the discount not getting bigger before your sell point.  Another consideration is how close is your holding period to the Bollere's?

Packer

There is a history of simplifying the structure (of course they take their due time). It seems reasonable Bollore is planning to simplify it further before handing it over to his son. As explained here https://valueinvestorsclub.com/idea/Financiandegrave%3Bre_de_lOdet/7018632841 that would most likely primarily benefit holders of ODET rather than BOL.

Meanwhile this is a compounder over decades which can be purchased at a large discount to IV (it does like to invest in riskier markets and take on political risk e.g Africa and the recent fight with Berlusconi). I believe you'll do good regardless of short term changes to the structure if your investment horizon is measured in the decades.

Looking forward to seeing contrary opinions :)

@John: Glad to help keeping boredom out the door. Don't forget about the wife though, ODET will be there next week/month/year ;)

Besides ODET (the holding above Bollore), there are other ways to buy in a discounted way into Bollore Spagetti structure though the low liquidity backdoor:

Plantation des Rouges (not publicity traded and controlled by other holding companies like ARTO.PA) it controls CBDG.PA (62.8%)
Compagnie Cambodge - CBDG.PA
Financier Moncey - MONC.PA (quite interesting)
La Societe Industrielle et Financiere de l'Artois  - ARTO.PA

These belong to a group of 4 Holding companies underneath Bollore, but only the three above are publicity traded. The float of these companies is quite small (<5% for the latter two) so they could easily be taken out. ARTO.PA has ~570M € in cash. Simply a mind boggling construct.


« Last Edit: January 22, 2020, 06:58:53 PM by Spekulatius »
Life is too short for cheap beer and wine.


ValuePadawan

  • Jr. Member
  • **
  • Posts: 95
Re: ODET.PA - Financière de l'Odet SE
« Reply #21 on: March 29, 2020, 07:16:14 PM »
I would just like to thank all of the previous posters for helping to clarify and help me realize the order in the chaos without you folks I as a beginner and relative whippersnapper would never have had the confidence to try unraveling this Gordian knot.

These calculations are as of today using FY 2018 numbers from the 2018 annual reports to show the ODET discount.
ODET price per share                         - €500
Bolloré price per share                       - €2.50
Odet ownership of Bolloré (Shares)     - 1,869,065,054
Odet equity stake in Bolloré                - € 4,672,662,635
Odet net debt                                    - € 275,188,000
PRE tax value Odet                            -  € 4,397,474,635
Odet shares outstanding                     - 4,244,911
Odet equity stake in Bolloré per share -  € 1,035.94
Bolloré pass through share price within Odet -  € 1.21

50% discount to an already discounted company seems like a double win to me. Again thanks to all the vets in guiding the way for me, the CoBF forum was an invaluable starting point in my learning about this opportunity.

dbm

  • Newbie
  • *
  • Posts: 4
Re: ODET.PA - Financière de l'Odet SE
« Reply #22 on: August 14, 2020, 07:46:37 AM »
Just to highlight that over the past week or so, VB bought ~25k shares, through Bolloré Participations (where the controlling family has 100%).

That's quite relevant for the liquidity of the stock. More than 4% of the free float.