The founding family of Italian luxury brand Tod's, Della Valle, has said it will not proceed with the buyout of the company after failing to reach the 90% stake required for privatization.
All shares offered for sale under the offer will be returned to their owners, the Della Valle family, which owns 64,5% of the company's shares, said in a statement.
On Wednesday, Tod's shares fell 21% to pre-bid levels in early August at 9.00:32,6 am to XNUMX euros.
Diego Della Valle, founder and chairman of Tod's, and his brother Andrea, through DeVa Finance, offered to other investors to buy Tod's shares at 40 euros per share.
The buyout offer was the latest attempt to relaunch a company that, like other Italian brands, built its name on craftsmanship but has struggled in recent years to capture the attention of younger luxury buyers.
The move was aimed at relaunching Tod's by operating various brands separately, perhaps dropping some in order to focus investment on the most profitable ones, Roger Vivier and Tod's. According to the Della Valle family, this goal has not changed despite the proposal not being successful.
“From tomorrow, we will all work to complete the project within the required time frame, which we hope will be very successful,” he said, adding that the structure of the group remains strong.
In addition to the eponymous brand known for its Gommino moccasins, Tod's also owns the Fay and Hogan labels, as well as Roger Vivier, whose $800-a-pair buckled shoes are the group's crown jewel.
The Della Valle family had previously said it could delist Tod's by merging it with DeVa Finance within six months of the takeover bid closing.
However, this option was seen as less favorable to the market and could result in shareholders who choose to divest shares in a company that is no longer listed on the exchange being forced to exercise their right to exit at a price lower than that offered in the buyout, brokers said. .
Rating |