We've already pointed this out in recent days, highlighting the seemingly slashed valuations of Havas and Canal+. See Canal Plus: Shaky start.
Stripped of some of its best assets, their former parent company Vivendi is not to be outdone. With its share price hovering around EUR2.5, the conglomerate is now valued on the stock market at EUR2.5 billion.
The main holding in the portfolio - at least two-thirds of the assets - is the Amsterdam-listed Universal Music Group, worth EUR4.4 billion. Subtract Vivendi's net debt of EUR1.9 billion, and you're right on target for EUR2.5 billion.
Except that Vivendi hasn't just kept Universal Music in its drawers. Vivendi's stake in Telecom Italia is worth EUR1 billion on the market. Taken together, those in Banijay Group, MFE, Telefonia, Prisa and Gameloft add up to EUR1.5 billion.
If we add the EUR1.5 billion in additional tax credits, we arrive at a net asset value of EUR6.5 billion. If we count them at zero - after all, why not - the net value falls to EUR5 billion.
In other words, at current prices, the discount to Vivendi's net asset value is likely to be between 50% and 62%. The latter may be explained by the forced sale of shareholders who no longer wish to remain in the capital of a group stripped of some of its historic holdings, or who intend to turn the page after a decade of frustration.
Other factors include the lock-in of the all-powerful - and willingly autocratic - Bolloré clan, the sluggish market season, year-end sales and the very low activity levels of funds focused on special situations.
