Tod’s shares, Della Valle does not reach the target of the takeover bid but confirms the strategy

After not having reached the threshold of effectiveness of the takeover bid launched for the delisting, the withdrawal from the Stock Exchange, Diego Della Valle confirms the strategy for the future of Tod’s put in place in agreement with his solid friend Bernard Arnault, the patron of the luxury giant Lvmh.

“We acknowledge that part of the market considered the offer to be below its expectations” comments Deva Finance, the financial company headed by Diego and Andrea Della Valle, which at the beginning of August launched a takeover bid on 25.5% of shares on the market of his Tod’s, and underlines: «Those who have decided to keep their shares having read the reasons for the Offer, illustrated by us in the offer document, mean that they share our vision and its execution; therefore, starting from tomorrow we will all work to obtain in the necessary time the realization of an operation that I hope and hope will be of great success ».

The reference is to the industrial project to increase the medium-term value of the group while there is still no indication on the way, an alternative to the takeover bid, to follow. Among the hypotheses it was proposed to arrive at the delisting in any case with a merger by incorporation of Tod’s into Deva Finance.

The result of the takeover bid would have allowed the Della Valle family (with Bernard Arnault intending to keep the 10% that LVMH has in Tod’s through Delphine) to rise to 86.95% of the capital: it is not enough, the minimum objective was was set at 90% as a condition of effectiveness. The takeover bid will not be completed: the operation failed.

The reaction to Piazza Affari was clear with the value of the shares which immediately returned to around pre-opa values. At the close of trading, the drop was 19.44% to 31.9 euros per share, after hitting the session lows of 31.2. “Our decision to launch the offer (making an amount of over 400 million euros available to the operation as the Della Valle family) – is still the comment of the Della Valle family – was determined by the fact that we intended, with an industrial strategy very precise, to be able to increase the value of the group in the medium term, also taking into account that difficult and unpredictable markets will have to be faced at a macroeconomic level all over the world. The price offered by us has been calculated taking into account future plans and accurate strategies; therefore from the beginning we have never mentioned or opened any changes to it ».

No raise on the price offered, therefore, nor a reopening of the tender offer period. “The strong structural foundations of the group, the loyalty of our consumers, the desirability of our brands, the competence of our craftsmen and the managers who lead the group – it is still emphasized – will be of great help to the realization of the project”.

The decision to aim for delisting twenty-two years after the listing was made – it was explained by launching the offer – to have greater freedom of action in a strategy that will aim “to strengthen the positioning of the brands”, Tod’s, Hogan, Roger Vivier, Fay, “at the top of the quality and luxury market, with a high level of desirability”