Another heart of Italy wants to leave the Milan stock exchange: the shoe and fashion manufacturer Tod's. At the same time, he allows the Anglo-Saxon private equity company L Catterton, which is allied with the French luxury group LVMH, to enter the capital. According to the latest plan, L Catterton is buying 36 percent of the capital for 43 euros per share. As a result, Tod's shares on the Milan Stock Exchange jumped by almost 18 percent on Monday to roughly the level of this takeover offer. The timing of the exit from the stock exchange and whether it occurs at all will depend on the success of the offer, the companies said. 90 percent of shareholders should agree.
Economic correspondent for Italy and Greece.
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Tod's is a traditional manufacturer that originated in the Italian Marche region. The grandfather of the current majority owner, Diego Della Valle, started out as a shoemaker; his father then expanded the business by selling women's shoes in Germany and the United States. Diego Della Valle later abandoned his law studies in order to establish the family business even more firmly on the world stage, including by marketing film stars and other celebrities.
It is now the right moment to say goodbye to the stock market, said the 70-year-old company boss Della Valle. Beyond the stock market, he has more business flexibility. Control of Tod's should remain in the family, emphasized the company leader, who has two children, but they do not play a major role in the company. Last year he announced in an interview that they would become more important in the future. At the same time, Della Valle calls LVMH majority owner Bernard Arnault a friend; he also sits on his LVMH board of directors. The Arnault Holding Delphine now holds around 10 percent of Tod's and wants to keep these shares. However, with the entry of the L Catteron fund, which has been linked to LVMH since 2016, the Della Valle family's stake will fall from 65 to around 54 percent if the transaction is successfully completed. It is said that if the proposal does not find enough support, Tod's and L Catterton will merge.
The Italian manufacturer already started a similar campaign in 2022, but then canceled it because not enough shareholders supported it. Citi analysts remain relatively skeptical: the price of the latest offer is only 7.5 percent higher than the failed offer from 2022. The turnaround to better business performance that Tod's has recently achieved is not fully reflected in the new one Takeover offer, they say. Tod's' range of brands also includes brands such as Hogan, Fay and Roger Vivier. The company had sales of 1.1 billion euros last year.