LVMH to consolidate hold on Dior in multibillion-euro deal

Robyn Ryan
April 25, 2017

French luxury group LVMH has agreed to acquire fashion brand Christian Dior's final 26 %.

Shares in both companies jumped Tuesday after Christian Dior, LVMH Moet Hennessy - Louis Vuitton and the Arnault Family Group announced a series of transactions consolidating their activities.

In their announcement, LVMH headed by Bernard Arnault announced that it would buy the 26 percent of shares of the Christian Dior pie that it doesn't now own.

The deal reshuffles LVMH's complex corporate relationship with Christian Dior and the Arnault family.

The public offer values each Christian Dior share at 260 euros, and represents a premium of 14.7 percent over Christian Dior closing share price as of April 24, 2017, as well as an 18.6 percent premium over the 1 month average share price. With this acquisition, LVMH will stake claim to Christian Dior Couture, which includes Lady Dior handbags, made-to-measure Dior gowns and men's and women's ready-to-wear lines.

Mr Arnault said the deal was an "important milestone".

Shares in Christian Dior soared 12% on the news in early trading in Paris, while LVMH was up about 3%.

Mr Arnault said the move illustrated his family's commitment and confidence in LVMH and its brands.

In an internal transaction, LVMH will then buy Christian Dior Couture, the fashion subsidiary of Christian Dior in a deal that values the unit at EUR6 billion. "I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide", said Bernard Arnault.

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