Who's Buying Up Christian Dior Couture?
Luxury company LVMH has its eye on the French couture brand.
Top luxury company LVMH says it plans to buy Christian Dior Couture, a wholly-owned unit of Christian Dior SA. The Arnault family, who owns 74 per cent of parent company, Christian Dior SA, will acquire the remaining 26 per cent in a move to streamline the current shareholder structure, LVMH finance chief Jean-Jacques Guiony told a telephone news conference.
Set up 70 years ago, Christian Dior Couture "is one the most iconic brands worldwide", LVMH said. Its activities range from leatherware, haute couture, ready-to-wear, jewellery and shoes and has a global network of 198 luxury boutiques and its sales have doubled over the past five years.
At the same time, the Arnault Family Group is planning a public takeover offer to purchase the shares in Christian Dior SA it does not already own. The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International, the statement said.
The simplification of the shareholder structure appeared to please investors and LVMH shares were showing a gain of around three percent on the Paris stock exchange in response to the news, while the blue-chip CAC 40 index was up just 0.1 percent.