April 23, 2021
French luxury group LVMH will raise its stake in fashion company Tod’s to 10%, Tod’s said.
Tod’s said in a statement that LVMH would buy a 6.8% stake from Tod’s founder and chairman Diego Della Valle. LVMH led by a French millionaire Bernard Arnault, Already owns a 3.2% stake in Tod’s.
“This deal strengthens the 20-year friendship between Arnaud and Della Valle’s family,” Tod’s said in a statement.
Near-problem sources said the French giant is not currently expecting to raise its stakes further. Diego de la Valle has been a member of the LVMH Board of Directors since 2002.
Italian luxury leather goods makers have performed worse than most other rivals as a result of the 2020 coronavirus pandemic. January sales fell to almost one-third of last year, and annual sales fell for the fifth consecutive year.
Known for its loafer shoes, the group rebranded in late 2017 and launched a new strategy to attract young consumers, but the health crisis has hampered that effort. Earlier this month, Italian influencer Chiara Ferragni joined the board of directors and was seen as a bid to significantly increase market share and revitalize the image.
Della Valle, who has increased its stake in the company over the past few years, has repeatedly denied this possibility, but market speculation has been repeated that Tod’s could be the target of acquisitions by larger groups. ..
“This could be a good reason to consider further opportunities to be taken in the future,” said Della Valle, without elaborating on the increase in LVMH’s stake.
After building an empire through a series of acquisitions, LVMH, with more than 70 brands, said last week that sales surged in the first quarter, surpassing market expectations and potentially boosting this year’s health emergency head-on. Reported that it raised expectations.
The group is often rumored to be a predator, despite saying it has just completed a $ 15.8 billion acquisition of US jeweler Tiffany and is currently focusing on absorbing the purchase. It has been. However, Jeffreys analyst Flabio Sereda said in a note late Thursday that Tod’s could see a further increase in LVMH shares.
The agreed price for the purchase of shares in LVMH is € 33.10 per share, a 10% discount on Tod’s share price. Tod’s shares closed at € 35.3 on Thursday. After the transaction scheduled to take place on April 28, De La Valle will own 63.64% of Tod’s outstanding shares.
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LVMH raises Tod’s stake to 10%
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