Leonardo Maria Del Vecchio reportedly offers to buy out Delfin shareholders, with financing secured
C•Leonardo Maria Del Vecchio has offered to buy out fellow Delfin shareholders and secured financing of up to €22 billion from Citi, a person close to him said. He aims to acquire five or six stakes and plans to present his proposal by November 7.
1. Buyout proposal
Leonardo Maria Del Vecchio has offered to buy out fellow shareholders in Delfin, the Luxembourg-based family holding company, and has secured financing of up to €22 billion from Citi, a person close to him said. In a letter published in an Italian newspaper, Del Vecchio called it the most serious proposal he had made and said he had secured backing from a leading international bank.
2. Plan and holdings
Del Vecchio aims to acquire five or six stakes in Delfin and said he had proposed both an immediate buyout and alternative structures for a more gradual purchase. He intends to present his plan by November 7, but a person close to the matter said the proposal sent to shareholders does not yet include financial details. Delfin is evenly split among eight shareholders and holds 32.4% of EssilorLuxottica, as well as stakes in Generali, Monte dei Paschi and UniCredit.
3. Earlier efforts
The proposal follows a €30 billion bid for Delfin by Czech businessman Michal Strnad that emerged last week. Earlier this year, Del Vecchio failed to acquire two shareholders’ stakes in a deal worth around €10 billion after banks backing the transaction could not secure required financing guarantees.
