Tod’s, the esteemed Italian luxury shoemaker, has made the decision to withdraw its proposed buyout of the company. The founding family, the Della Valle family, was unable to meet the necessary 90% ownership threshold required to privatize Tod’s, resulting in a significant drop in the company’s shares by almost 20%. The shares now stand at 31.9 euros, marking the lowest level since the family’s bid was initially unveiled in August.
Following the failure of the buyout offer, the Della Valle family is now faced with determining the next steps for Tod’s. One potential option, as mentioned in the bid’s documentation, involves the delisting of Tod’s by merging it with the family’s financial vehicle, DeVa Finance. However, DeVa Finance has stated that no decision has been made concerning the delisting. A source close to the matter suggests that the family will announce their decision regarding the company’s future plans within the next few days.
The proposed buyout involved Tod’s founder and Chairman, Diego Della Valle, along with his brother, Andrea, offering to purchase the remaining shares at a price of 40 euros per share. If the delisting through a merger with DeVa Finance were to proceed, minority shareholders could find themselves in a less advantageous position. In such a scenario, these shareholders would have the option to exercise their right to withdraw and liquidate their holdings, with Equita, a broker, providing a calculated price of 36.2 euros.
At present, the Della Valle family holds a 64.5% stake in Tod’s, while the French luxury conglomerate, LVMH, possesses a 10% share. LVMH has expressed support for the delisting proposition. Despite the unsuccessful attempt at a buyout, the Della Valle family affirms their commitment to managing Tod’s diverse brands separately in order to focus on the most profitable ones. They remain determined to work towards a successful project in the days to come.
Aside from its well-known eponymous brand, which is famous for its Gommino loafers, Tod’s also owns other renowned labels, such as Fay and Hogan. The crown jewel of the group, Roger Vivier, is recognized for its buckled shoes priced at $800 per pair. The successful relaunch of Roger Vivier has further highlighted the significance of managing Tod’s various brands individually and potentially divesting some to ensure the long-term profitability of the company.
Useful links:
1. Tod’s Official Website: Access Tod’s official website for more information about their luxury footwear and brands.
2. Equita Brokerage: Visit Equita’s website to explore their brokerage services and gain insights into their calculated price analysis.
