Groupe Bruxelles Lambert (OTCPK:GBLBF) is a Belgian based holding company that has quite a track record. The stock is trading at a discount to NAV with a nice dividend yield.
The market cap is €11.2 billion ($12.32 billion). The dividend in 2015 was €2.79 and the dividend yield is 4%. The weekly adjusted NAV per share is €85.16 and the stock is trading for €69.45. Thus, the stock is trading at a discount to NAV by 18.5%. It takes $1.10 to buy one euro.
The portfolio includes: 9.4% of Lafarge/Holcim (OTCPK:HCMLF, OTCPK:HCMLY) worth $1.16 billion, 52.3% of Imerys (OTC:IMYSF, OTC:IMYSY) worth $2.43 billion, 7.5% of Pernod Ricard (OTCPK:PDRDF, OTCPK:PDRDY) worth $2.15 billion and 2.3% of engie (OTCPK:ENGIY) worth $805 million.
What is interesting is the GBL sold off 0.7% of the total capital of Total (NYSE:TOT). It seems that GBL has gotten beaten up in energy with the rest of us. The dollar value according to Reuters was $726 million and the company still booked a €260 million ($286 million) gain.
As of the end of September, it also listed investments in: adidas worth €706 million ($777 million), Umicore €629 million ($692 million), Ontex €138 million ($152 million), and Sienna Capital €630 million ($693 million). Adjusted net assets as of the end of September 2015 was €13.76 billion ($15.14 billion) which is different than the updated weekly NAV.
The stock usually trades at a discount to NAV in this ballpark. What I find a little more difficult to analyze is the value of the privately held investments. Could they be worth less as the European markets have fallen in value or worth more if they were sold or taken public? I can't answer that question.
50% of the stock is held by Pargesa (OTCPK:PRGAF) and 52% of the voting rights. I've written on these companies in the past. It is quite a web of holding companies spread across the francophone world.
I'll have to meditate on whether or not we'd buy the stock. I like the dividend yield but you'd have to want to own France. If the dividend remains the same, I'm tempted.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.