MILAN — The Damiani family is launching a takeover bid with the goal to delist the namesake jewelry firm from the Milan Stock Exchange through the holding company Leading Jewels, according to a note published on the Italian Bourse web site.
D Holding, a company controlled by siblings Guido, Giorgio and Silvia Damiani, has a 60.82 percent stake in Leading Jewels. The bid will take place to buy more than 13.8 million shares, priced at 0.44 euros each, and representing 16.74 percent of the capital. The maximum value of the offer will total 11.8 million euros, or 0.855 euros per share, a premium of around 5.04 percent compared with 0.814 euros, the price of the shares on Dec. 27, the last day before the announcement of the takeover bid.
Damiani went public 11 years ago, with shares priced at 4 euros.
In addition to its own namesake label, the company has invested in jewelry firms Salvini, Rocca, Calderoni and Pomellato, which is now controlled by Kering. In 2016, the Damiani family acquired a majority stake in the Venini company, known for its colorful and artistic glass designs, and a leading firm in Murano, the glass production hub in Venice’s lagoon. The acquisition, whose financial terms were not disclosed, was part of the Damiani’s strategy to invest in and develop historic luxury brands.
The group closed the fiscal year ended March 31 with a net loss of 4 million euros, compared with a loss of 5.5 million euros in the previous year, on sales of 164 million euros, a 1.6 percent increase. At constant exchange rates, revenues grew 3.1 percent. The retail channel drove this growth, climbing 12.9 percent to 86.4 million euros and accounting for almost 53 percent of the total. The wholesale channel showed a 8.7 percent decrease to 77.6 million euros.
Italy remained the core market for Damiani, contributing sales of 112.1 million euros, down 1.9 percent compared with the previous fiscal year, while sales outside the country rose 9.9 percent to 52.2 million euros. Earnings before interest, taxes, depreciation and amortization grew 24.1 percent to 5.3 million euros, benefiting from nonrecurring gains of 1.5 million euros. Net of this, the group would have registered a 93 percent increase in EBITDA.
The company counts 800 employees in 17 international branches, 49 boutiques and 1,500 wholesale accounts. Last year, Damiani opened boutiques in Tokyo’s Ginza Six, at Plaza 66 in Shanghai, at Dubai Mall in Dubai, in Singapore and in South Korea.
The delisting will follow that of Luxottica, in the wake of the merger with Essilor, as the new EssilorLuxottica is listed in Paris. In June, Yoox Net-a-porter was delisted after the successful takeover bid by Compagnie Financière Richemont SA. And the Bourse lost the opportunity to see the highly anticipated initial public offering of Valentino as, in May, the brand’s chief executive officer Stefano Sassi said it was “on hold” and “not a priority.”