The founders and owners of luxury brand Tod’s, the Della Valle family, have fallen short of the ownership threshold required for their proposed delisting of the company. In their bid to take full control of Tod’s, the Della Valles were aiming to secure a 90% ownership by having investors tender their shares. However, only 4,134,358 shares were tendered, while they needed acceptance for 5,144,373 shares to reach the desired threshold.
Diego Della Valle, founder and chairman of Tod’s, along with his brother Andrea, had offered a buyout price of 40 euros per share, which had the potential to be a substantial investment of up to 338 million euros ($336 million). The family’s plan also involved merging the company with their vehicle DeVa Finance within six months of the bid’s closing. This would have resulted in non-participating investors holding a minority stake in a privately-held company.
However, investors who opted out of the buyout bid still have the option to exercise their right of withdrawal. It is anticipated that the withdrawal price will be around 36 euros, which is lower than the takeover price. Some brokers suggest that this lower price may incentivize investors to withdraw their shares rather than retain them in a company that is no longer publicly listed.
A potential alternative option that has been discussed is a reverse merger, although it is considered less likely. One concern with this approach is the possibility of shareholders who are forced out contesting the merger through legal channels, which could cause delays in the process.
Following the news of the failed buyout bid, Tod’s shares experienced a decline of 2.4% and ended the day at 39.6 euros. This decline contrasted with a 1.5% increase in Milan’s all-share index.
The outcome of the Della Valle family’s bid and the future of Tod’s as a publicly listed company remain uncertain. Investors will be keeping a close watch on how the situation unfolds and what it means for their investments in Tod’s.
Useful Links:
1. Tod’s Official Website
2. Borsa Italiana Official Website
