The Della Valle family, who own Italian luxury brand Tod's, have said their holding company will pay €40 per share to delist the company on the Milan Stock Exchange.
The family's latest statement says it will spend up to 388 million euros to buy out other investors' shares at 40 euros per share, valuing the company at 1,32 billion euros.
The Della Valle family, which currently owns nearly 64,45% of Tod's, plans to acquire a 90% stake. French luxury house LVMH will retain a 10% stake, up from last year's 3,2% after Diego Della Valle's decision to step down from direct management of the company meant it was open to a potential sale of the business. At the same time, a source close to the case told Reuters that this circumstance should not be seen as a prologue to the sale of the company to the luxury concern LVMH.
According to the intent document, the goal is to add value to the group's four brands, namely Tod's, Roger Vivier, Hogan and Fay, by giving them greater operational autonomy and strengthening their position at the high end of the luxury market. The Della Valle family believes that keeping the company listed will not help achieve this mid- and long-term goal due to the need for short-term results.
Listed in 2000, Tod's is struggling to keep up with the rest of the luxury industry and reaching out to a younger generation, with analysts noting the brand is missing out on key trends like sneakers.
Even though Tod's revenue has tripled as it expanded into the Chinese market, JPMorgan emphasizes that operating income has not increased and forecasts a profit of 52 million euros this year, up from 56 million euros in 2001.
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