Bulgari, the Italian jewellery, watch, accessories and fragrance house, is the latest company to join forces with the LVMH Group in order to reinforce its long-term development. The Board of Directors of both the groups’ have unanimously approved the contribution of the Bulgari family’s majority shareholding in Bulgari SpA to LVMH. Upon the completion of the share transfer process, LVMH will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari family, who will become LVMH’s second largest family shareholder.
LVMH will also submit a public purchase offer at the price of €12.25 per share on the shares held by minority stockholders, in accordance with Italian stock exchange regulations. The current chairman and vice chairman of the Bulgari SpA board of directors, Paolo and Nicola Bulgari, will retain their positions, and the Bulgari family will be entitled to appoint two representatives to the LVMH board of directors.
“The alliance between my group and the Bulgari family is a perfect combination from all points of view as we share the same culture in terms of respect for the identity and roots of the brands, quest for excellence, creativity and innovation,”says Bernard Arnault, LVMH.
Source: http://www.cosmeticsbusiness.com
