Viel Et Cie: Undervalued Exposure To Liquidity Provision

2025-01-15 08:00:00 ET

Summary

• Viel et Cie (VIL.PA) trades at a 54% discount to intrinsic value, driven by tight ownership and undervaluation of its key holdings.
• The controlling 71% stake in Compagnie Financière Tradition (CFT.SW) has significantly appreciated, yet VIL's market cap hasn't kept pace, highlighting a valuation gap.
• VIL's 83% holding in Bourse Direct (BSD.PA) and 40% stake in Swiss Life Gestion Privée offer substantial hidden value, suggesting potential for structural consolidation.
• VIL's shares provide a discounted entry to Tradition at CHF45.60 per share, making it a preferred exposure to the sector and the "Combes" group.

The following segment was excerpted from this fund letter.

Viel et Cie ( VIELF, VIL.PA) is a €724million market capitalised 4 French listed financial holding company trading at ~54% discount to our assessment of the value of its three component parts (see concluding table). This is partly accounted for by the tight ownership of the company with the interests of Patrick Combes, the driving force behind VIL since 1979, holding 70% of the shares (74.8% excluding treasury stock), 6.6% of the shares being in treasury and three other long standing stable shareholders leaving only around 7.2million shares – 11.4% of shares – as a free float....

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