The Della Valle family wants to delist the group and has asked the Arnault family for help in making Tod’s private. L Catterton, an investment fund effectively utilized by LVMH and owned by the Arnault family, plants on paying nearly 512 million euro to buy 11.9 million shares of Tod’s for 43 euro per share. That’s the price set by the Public Purchase Offer (OPA) and if all goes well, 54% of Tod’s will remain with the Della Valle family and 36% with L Catterton, while 10% will end up directly into Delphine (another entity owned by the Arnault family). Vice versa, if the OPA doesn’t materialize, the deal is set to shift towards a merger.
Tod’s wishes to delist
Brothers Diego and Andrea Della Valle are once again trying to take Tod’s private. The group now wants to delist, which is something it had already tried to do in 2022 (and failed). This time though, the operation is backed by a strong partner: L Catterton. Success seems to be closer now, with the price per share set at 43 euro per share rather than 40 (17.6% more than what the closing price was last Friday). A lower percentage, compared to the 20% overprice offered in 2022.
OPA for Della Valle and L Catterton
“As of now, exiting the stock market is something that makes strategic sense”, commented Diego Della Valle, president and CEO of Tod’s. “I am glad for this operation as it will bring benefits to the group’s future developments. Continuous developments and challenging goals. Sharing this operation with L Catterton allows us to further grow and take on the market’s opportunities”.
Scenarios according to BoF
Secondo Business of Fashion, Tod’s delisting “could allow for additional expenditure in marketing activities, as well as more radical moves to clean distribution channels”. But keeping in mind Tod’s eventual sale to LVMH, allows the group to set a fixed sale price without being attached to the market price. Meanwhile, on Monday 12th, Tod’s share price took off on the Milan Stock Exchange: +17.2%.
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