LVMH offers itself Tiffany with a small discount

A Tiffany store in Hong Kong in October 2019.

LVMH got a 2.59% discount to afford Tiffany. After two months of intense negotiations, the French luxury group has obtained the agreement of Tiffany’s board of directors to modify “ the terms of the merger contract With the New York jeweler at a repurchase price of 131.50 dollars (112 euros) per share, announced the two groups, by press release, Thursday, October 29. This amount will replace the $ 135 per share provided for in a first buyback agreement signed almost a year ago, on November 24, 2019, and approved by Tiffany’s general meeting of shareholders on February 4, 2020.

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At the time, Bernard Arnault’s group had assured that it would spend $ 16.2 billion to get their hands on the jeweler founded in New York in 1837. Carried out in cash, the operation was to be finalized in mid-2020, after downstream from the competition authorities. It should not finally be realized until January 2021, after approval by Tiffany shareholders at an extraordinary general meeting. LVMH will then disburse 425 million dollars less than initially planned. Or $ 15.7 billion, the equivalent of € 13.3 billion.

The amended agreement maintains the payment of the quarterly dividend in the amount of $ 0.58 per share to Tiffany shareholders. ” The board considered it to be in everyone’s best interest [les] stakeholders to finalize this operation with certainty “, Assured Roger Farah, chairman of the board of directors of Tiffany, by press release.

This compromise putsone end to all
the procedures judicial »Ongoing between LVMH and Tiffany

This compromise putsan end to all procedures judicial Ongoing between LVMH and Tiffany. The luxury group had first started a battle with Mr. Farah, in the spring of 2020. The pandemic due to the coronavirus then began to bring down the world economy and bring down the title of the jeweler. In March, according to the American group, its French buyer had first sought to buy shares at a lower price on Wall Street. Even if it means giving up its clause called ” from standstill Which, precisely, forbade him this practice. Already, although he defended himself by press release, on March 23, Mr. Arnault’s group was seeking to reduce the bill, according to Tiffany.

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At the beginning of June, the entire luxury sector understands that the pandemic will wreak havoc on the accounts of all players and, for lack of tourism, permanently weaken activity in all luxury boutiques. In great secrecy, LVMH advisers are working to identify the means that would make it possible to convince Tiffany to lower the price agreed for the operation ”, Reuters reports, June 4. The title then unscrews a little more. But it is only in September that the group of Bernard Arnault falls the mask.

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