ADVERTISEMENT
LVMH to bag company for 6.5 bn euros
The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International.
Christian Dior Couture
At the same time, the Arnault family who own 74 percent of the parent company, Christian Dior SA, will acquire the remaining 26 percent in a move to streamline the current shareholder structure, LVMH finance chief Jean-Jacques Guiony told a telephone news conference.
Set up 70 years ago, Christian Dior Couture "is one the most iconic brands worldwide", LVMH said.
Its activities range from leatherware, Haute Couture, read-to-wear, jewellery and shoes and has a global network of 198 luxury boutiques and its sales have doubled over the past five years.
ADVERTISEMENT
Last year, revenues amounted to more than two billion euros and it booked underlying or operating profit of 270 million euros.
Under the current group structure, Christian Dior Couture is wholly owned by Christian Dior SA, which for its part also holds a 41-percent stake in LVMH.
By making it a wholly-owned subsidiary, LVMH would be able to harness its "high growth potential" of Christian Dior Couture, the statement said.
At the same time, the Arnault Family Group is planning a public takeover offer to purchase the shares in Christian Dior SA it does not already own.
The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International, the statement said.
ADVERTISEMENT
The simplification of the shareholder structure appeared to please investors and LVMH shares were showing a gain of around three percent on the Paris stock exchange in response to the news, while the blue-chip CAC 40 index was up just 0.1 percent.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
Truck driver arrested for allegedly causing train accident on Tema-Mpakadan railway line
Kia driver who caused accident involving Ghana’s new train reports himself to Police
No passenger injured in accident involving Ghana’s newly imported train – Railways Minister
NAGRAT gives govt one-week deadline to address unpaid pensions affecting 700,000 workers
Inside story of how Ghana’s new train got involved in accident on a test run
She sent naked photos to Dubai lover while I battled kidney disease - Erico speaks on divorce
How did young politicians get so rich in just 5 to 7 years - Franklin Cudjoe asks
Artificial Intelligence will affect around 40% of the global workforce — IMF