MF FP

WENDEL

Finance/Real Estate


Presented:06/09/2015
Price:€110.15
Cap:$5.74B
Current Price:€93.10
Cap:$4.41B

Presented

Date06/09/2015
Price€110.15
Market Cap$5.74B
Ent Value$12.62B
P/E RatioN/A
Book Value€53.51
Div Yield1.81%
Shares O/S46.32M
Ave Daily Vol70,000
Short IntN/A

Current

Price€93.10
Market Cap$4.41B
Wendel is a private equity firm specializing in equity financing in middle markets and later stages through leveraged buy-out transactions. The firm invests in companies operating in oil and gas, real estate, healthcare equipment and services, electricals, information technology, materials, telecommunications, and utilities. companies. It invests in both listed and non-listed companies. The firm seeks to invest in Europe, North America and Africa and prioritizes its investments in France, Germany, Belgium, Netherlands, Luxembourg, United States, and Canada but also considers investments in other geographies. It invests between €0.2 million ($0.26 million) and €0.5 million ($0.66 million) in companies in the priority geographies which includes France, Germany, Belgium, Netherlands, Luxembourg, and Canada. For other geographies, it invests up to €0.2 million ($0.26 million). The firm acquires at least a 34 percent stake in each portfolio company and requires the majority of voting rights. It prefers to take a majority stake in its portfolio companies. The firm seeks to take a seat on the board of directors or supervisory board of its portfolio companies. It makes balance sheet investments. Wendel was founded in 1704 and is headquartered in Paris, France with additional offices across Asia, North America, and Europe

Publicly traded companies mentioned herein: Bureau Veritas SA (BVI FP), Cie de Saint-Gobain (SGO FP), Wendel SA (MF FP

Highlights

The presenter is long shares of Wendel (MF FP), citing an excessively discounted NAV, a good African tower asset, and “no significant downsides” in the company’s portfolio. The presenter characterizes MF FP as a “publicly traded private equity firm” with most assets in publicly traded companies, and thinks it is poised to trade closer to NAV as the company enters more private positions. On top of NAV tightening, the African tower asset is expected to provide an additional 10% - 20% upside to MF FP share price for a ~€142/$160 price target.

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Idea Discussion

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