Shares of Tod’s SpA surged on Monday after a delisting plan was announced for the Italian luxury goods maker best known for its pebble-soled driving shoes. Tod’s stock
TOD,
+18.15%
jumped 17% in Milan following a takeover bid announced Sunday by U.S.-based private-equity group L Catterton, which said it would pay €43 per share for a 36% stake, worth €512.3 million ($552.4 million), in the brand.
Catterton is also backed by a massive name in luxury: It became part of LVMH Moet Hennessy Louis Vuitton
MC,
+0.89%
and Groupe Arnault, the holding company owned by LVMH Chief Executive Bernard Arnault, in 2016. Separately, LVMH said it would hold a 10% stake in the group after its delisting. The founding Della Valle family will keep 54% of Tod’s shares and control of the new company if the deal goes ahead, but will also tender a 10.54% stake. A delisting of Tod’s is due to take place after the bid is complete. The deal offers a roughly 18% premium to Friday’s close of €36.36 per share, and a 27% premium to the last six-month average for shares, valuing the company at about €1.4 billion, noted Citi analysts Thomas Chauvet and Lorenzo Bracco. However, given a previous failed delisting attempt in August 2022 by controlling shareholder Diego Della Valle at €40 per share, the Citi analysts said the new offer may fall short of enticing minority shareholders. That’s “particularly given evidence of a turnaround at the Tod’s brand over the past 12 months and hidden value at Roger Vivier, a niche, high-end footwear brand with €287 million in sales and high profitability historically,” they said. But others say those shareholders might be lured in this time, given the Diego Della Valle family’s p …
Article Attribution | Read More at Article Source
TOD,
+18.15%
jumped 17% in Milan following a takeover bid announced Sunday by U.S.-based private-equity group L Catterton, which said it would pay €43 per share for a 36% stake, worth €512.3 million ($552.4 million), in the brand.
Catterton is also backed by a massive name in luxury: It became part of LVMH Moet Hennessy Louis Vuitton
MC,
+0.89%
and Groupe Arnault, the holding company owned by LVMH Chief Executive Bernard Arnault, in 2016. Separately, LVMH said it would hold a 10% stake in the group after its delisting. The founding Della Valle family will keep 54% of Tod’s shares and control of the new company if the deal goes ahead, but will also tender a 10.54% stake. A delisting of Tod’s is due to take place after the bid is complete. The deal offers a roughly 18% premium to Friday’s close of €36.36 per share, and a 27% premium to the last six-month average for shares, valuing the company at about €1.4 billion, noted Citi analysts Thomas Chauvet and Lorenzo Bracco. However, given a previous failed delisting attempt in August 2022 by controlling shareholder Diego Della Valle at €40 per share, the Citi analysts said the new offer may fall short of enticing minority shareholders. That’s “particularly given evidence of a turnaround at the Tod’s brand over the past 12 months and hidden value at Roger Vivier, a niche, high-end footwear brand with €287 million in sales and high profitability historically,” they said. But others say those shareholders might be lured in this time, given the Diego Della Valle family’s p …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]