Sofina TikTok deal nears, clearing political overhang on Sofina's largest holding
The WSJ reported that ByteDance, parent of TikTok, is nearing a deal to resolve U.S. regulatory concerns. A consortium led by Oracle, Silver Lake, and Andreessen Horowitz are set to control 80% of its U.S. business under a U.S.-China framework. The arrangement also includes an American-dominated board and Oracle handling U.S. user data in Texas, while licensing ByteDance's algorithms. Sofina acquired a minority stake in ByteDance in 2016 through a special purpose vehicle alongside other investors, with additional exposure via Sofina Private Funds partnerships. Bytedance is Sofina's largest holding valued at €454m (~4.8% of NAV). Note that TikTok's global operations “only” account for ~25% of Bytedance's revenue. A deal would resolve years of uncertainty from Trump's first-term ban attempts and a 2024 law. The financial impact is still unknown, but we view this positively for Sofina as it removes political overhang.SOFINA is an investment company whose portfolio consists of shareholdings in various companies. Co. manages a portfolio of long-term and short-term investments. Its portfolio comprises investments in companies which are active in sectors such as: Energy and Services (GDF Suez, Suez Environnement, bioMerieux and Exmar); Retail (Colruyt, Delhaize); Consumer goods (Danone, Rapala, B & W Group, and Chapoutier); Satellite operators (SES); Finance Companies (Eurazeo, Caledonia, Luxempart, RAB Capital); Industry (Petit Forestier, Landis + Gyr, Carbone Lorraine and Deceuninck) and Alternative assets (Private equity, Hedge funds).
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