👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Tod's CEO says he has no plans to sell 'family business'

Published 02/23/2024, 03:21 AM
Updated 02/23/2024, 01:41 PM
© Reuters. Tod's Chairman Diego Della Valle smiles during an interview a day before the presentation of the Colosseum dungeons which have been restored in a multi-million euro project sponsored by the fashion group in Rome, Italy, June 24 2021. Picture taken June 24
TOD
-

By Elisa Anzolin

MILAN (Reuters) -The founder of Italian luxury shoemaker Tod's said on Friday he had no plans to sell the company after taking it private via a deal with private equity firm L Catterton.

The private equity group backed by France's LVMH offered this month to buy 36% of Tod's and delist it, in agreement with the Della Valle family which created the company.

"We don't have to sell anything. We have a family business with young people who want to do this job. What could be better than that?" Tod's CEO and Chairman Diego Della Valle said on the sidelines of the brand's fashion show in Milan.

Diego Della Valle, who has two sons, currently holds 64.5% of the group together with his brother Andrea.

Under the deal, Diego Della Valle will tender his personal 10.45% stake to L Catterton, while retaining 54% together with his brother. LVMH will keep its current 10% stake.

The move followed a failed attempt by the Della Valles to take the company private in 2022.

Under a shareholder agreement among L Catterton, the Della Valle family and LVMH published on the Tod's website, the parties settled on a lock-up period of four years starting from the delisting date.

At the end of this, if one of the shareholders wishes to sell its shares to a third party, it will have to notify the others and give them the right to submit a first offer.

According to the same document, if a shareholder wishes to sell its stake to a competitor, the Della Valle family will have the right to refuse permission.

The Della Valle family will also have the right to propose the CEO, and Diego Della Valle, as chairman, will have the final say on strategy.

© Reuters. FILE PHOTO: Tod's Chairman Diego Della Valle gestures during an interview in Rome, Italy, June 24 2021.REUTERS/Remo Casilli/File Photo

On Friday Tod's new creative director Matteo Tamburini presented his first collection for the brand, in a show entitled "Tod's in motion".

The models walked the runway in a tram depot in Milan, in a collection characterised, according to the show notes, by the duality of urban life and leisure.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.