Christian Dior RTW Fall 2017

PARIS — French billionaire Bernard Arnault’s family holding officially filed on Monday with France’s financial market authority its simplified mixed offer for the outstanding shares it does not already own in Christian Dior.

The offer’s terms are in line with the plan announced on April 25, when Arnault made public his decision to bring Christian Dior Couture into the LVMH Moët Hennessy Louis Vuitton fold.

“Based on the independent expert’s conclusions, which confirm that the offer is fair and further to the release of the favorable opinion of the ad hoc committee composed of independent directors, the board directors of Christian Dior, held on May 22, has unanimously recommended that Christian Dior shareholders tender their shares to the offer,” LVMH said in a statement on Tuesday.

“In addition, Christian Dior Couture’s works council [comité d’entreprise] has released a favorable opinion on the proposed disposal of Christian Dior Couture to LVMH,” it continued, adding that the LVMH and Christian Dior boards of directors have also unanimously approved the agreement through which Christian Dior Couture will be acquired by LVMH for 6.5 billion euros, or $7.31 billion at current exchange.

The move will make Dior the second-largest brand in LVMH’s fashion division, behind Louis Vuitton and ahead of Fendi, reuniting its fashion and fragrance activities under a single umbrella.

RELATED STORY: Investors Cheer LVMH’s Offer to Buy Christian Dior Couture >>

Also on April 25, Semyrhamis, the investment firm controlled by the Arnault family, made an offer of up to 12.1 billion euros, or $13.6 billion, for the 25.7 percent stake in the Christian Dior Group that it did not currently own, using its remaining stake in rival Hermès International as partial payment.

Presently, the Christian Dior Group includes Christian Dior Couture and LVMH. Christian Dior Couture encompasses the brand’s apparel, accessory and jewelry business, while Dior’s perfume and cosmetics lines are exercised under the umbrella of LVMH.

At the time, Arnault noted the deal would simplify the structure of LVMH and reinforce his family’s holding’s grip on the group, which controls brands including Sephora, Bulgari, Guerlain and Moët & Chandon.

Arnault’s stake in LVMH will rise to 46.8 percent from 36.2 percent previously.

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