Today it's time to catch up!

After september will close the month at a minimum and that once again the seasonality that presents it as the worst month of the year for the stock market was fulfilled, the immediate recovery on Friday makes us reaffirm our positive vision between now and the end of the year.

With oil at maximum, rates rising and the total opening of the different world economies occurring in a staggered manner, it seems that all those companies considered “value / value”, which present a potential investment based on their strong foundations and not on their growth , at the same time that in their undervaluation, they can become the engine of the following stock market rise period. We refer to oil companies, banks, airlines, hotels, as well as companies that have undergone a major restructuring. Among them, today I want to highlight an unusual situation: that of Distribuidora Internacional de Alimentos or commonly known as DIA.

EP

I’m sure you know this company well and most of you will have bought more than once from it. However, they are probably unaware that the chain that invented the “discount” format is currently being cornered by competition from LIDL y ALDI and that, what was the jewel in the Carrefour Group’s crown, is today controlled by Mijaíl Fridman, a Russian oligarch of dubious business practices to say the least.

There is no doubt that this man has experience in major restructuring within the sector and that he has turned X5 Retail Group in the most important supermarket chain in Russia with 15,700 stores. It is true that he has a lot at stake in DIA, since he has invested 2,200 million euros since 2017, which has helped him to gain 77% of the company, but the truth is that at that time the company capitalized just over 3,000 million and today, after a last and recent increase of almost 1 billion, the company has a market capitalization of 851 million euros, at the close of Friday.

Europa Press

Fridman has reached this position of control through partial takeovers and, mainly, through the conversion of DIA’s debt in shares issued at a nominal value such that they have always ended up causing a massive dilution of minorities. To make matters worse, Fridman acquired this debt at an average of 60% of its value.

In the last increase, 51,387 million new shares were issued, compared to to the 6,678 pre-existing ones, in such a way that if the minority parties had not attended the expansion Mijaíl Fridman it would have taken 74.89% of the company. Once all the bonds purchased and lines of credit had been capitalized, they would have had 96% of the shareholding through their company LetterOne. As confirmation that the minority interest was not Mikhail’s priority, let me tell you that DIA was dealing at 6 euro cents the day its capital increase was announced and it was made at 0.02 euros… no comment.

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