MILAN — Eurazeo SA confirmed Thursday the sale of 19.5 million shares in Moncler SpA, through its subsidiary ECIP M. The sale, first announced on Wednesday evening, represents about 7.8 percent of the company’s capital. As a result, ECIP M will own a 15.5 percent stake in Moncler and Eurazeo’s economic interest will amount to 13 percent of capital. Paris-Based firm Eurazeo first became a shareholder of Moncler in 2011.
That stake in the luxury firm is valued at about 340 million euros, or $383.2 million at current exchange rate. Eurazeo netted proceeds from the sale of around 280 million euros, or $315.6 million. The offering will be settled on May 18.
“Moncler’s unique positioning in its industry and its outstanding operational performance resulted in a strong valuation of its share price in recent weeks, which allowed us to sell around a third of our stake under very good conditions,” said Virginie Morgon, deputy chief executive officer of Eurazeo. “We are convinced that Moncler still has strong potential to develop its network of stores and its product offering and for geographic expansion. We have full confidence that [chairman and chief executive officer] Remo Ruffini and his teams will continue its fantastic growth and we look forward to supporting them.”
Eurazeo will retain its three mandates on the board of directors.
ECIP M has agreed to a 90-day lock-up on the shares held in Moncler.
In late morning trading on Thursday, Moncler shares had dropped 3.39 percent to 17.09 euros, or $19.26.
On Wednesday evening, Moncler’s stock had closed up 9.1 percent to 17.69 euros, or $20.08. The steep rise came on the back of the company having reported on Tuesday a 69 percent surge in its first-quarter net income to 39.6 million euros, or $43.2 million at average exchange for the three-month period.
ECIP M SA is to sell the 7.8 percent stake via an accelerated book building to institutional investors. Bank of America Merrill Lynch is managing the share placement, effective immediately, and Lazard is acting as Eurazeo’s financial adviser.
Moncler’s ownership structure has been in flux. In June 2014, The Carlyle Group sold its remaining stake in the company, equal to 7.13 percent. Carlyle had been part of Moncler since 2008, when Ruffini Partecipazioni – the brand’s largest shareholder, which is linked to Remo Ruffini– sold Carlyle a 48 percent stake in the firm.
In June 2011, Carlyle and Ruffini sold 45 percent of the fashion house to Eurazeo for 418 million euros, the equivalent then of $611.5 million, and Moncler pulled the plug on plans to launch an initial public offering that summer on the Milan Stock Exchange. The fashion house was eventually publicly listed in Milan in December 2013, when Eurazeo sold down its stake.
Meanwhile, Eurazeo has been busy elsewhere on the fashion front. In March 2014, it bought 10 percent of the Spanish chain Desigual to help fuel that brand’s international expansion.