Bolloré (XPAR:BOL, Financial), one of our top holdings, is currently simplifying its business by selling its African port and logistics business. The transaction is expected to close in the next six months, and the cash proceeds will take the company from levered to cash-rich. Given Bolloré’s history of executing attractive, opportunistic deals, the cash could be coming in at an excellent time.
Bolloré’s shares trade at a steep discount to what we believe they are worth, partly due to a complex ownership structure where the company is controlled by an entity called Compagnie de l’Odet (Odet), which, in turn, is partly owned by Bolloré. In the last couple of quarters, Odet has executed one of the most aggressive share purchases we have seen, buying more than 100 million shares of Bolloré. We believe all of today’s market cap of Bolloré is accounted for by its publicly traded holding of Universal Music Group, a leading owner of music rights and publishing.
From the Yacktman Fund (Trades, Portfolio)'s third-quarter 2022 commentary.
