LVMH increases Tod’s stake to 10%
Chairman of Italian leathergoods group Tod’s, Diego Della Valle, recently released a statement announcing that his company had entered into a sale and purchase agreement with fully owned LVMH subsidiary Delphine.
The deal will effectively raise LVMH’s share in Tod’s from 3.2% to 10% - representing a 6.8% increase - following completion of the transaction on April 28.
After the deal closes, Mr Della Valle will effectively own 63.64% of Tod’s shares, both directly and indirectly, the release said.
According to WWD, the Italian stock exchange witnessed Tod’s share price rise by 9.5% by mid-morning on April 23, reportedly as a result of the previous evening’s announcement.
“I am delighted by this transaction, which consolidates the friendship between myself, my family and [LVMH chairman and CEO] Bernard Arnault and his family, which has lasted for more than 20 years now,” Mr Della Valle commented.
On behalf of LVMH, Mr Arnault added: “The friendship with Diego Della Valle and his family goes back over 20 years, a relationship cemented by common human and professional values. We are very happy to further reinforce this partnership.”
This latest development comes around two weeks after Tod’s inked a ground-breaking partnership with Italian style influencer and digital entrepreneur Chiara Ferragni, who currently has more than 23 million followers on Instagram alone, by appointing her to its board.
After news broke of Ms Ferragni joining the team, Tod’s shares rose by around 12.1% on April 9, WWD reported, ultimately meaning that LVMH’s Delphine would have paid more for its recent share purchase than earlier in the month.
Image: Tod’s.
