LVMH: Moncler partnership with Remo Ruffini

(CercleFinance.com) - French luxury goods giant LVMH announced Thursday evening that it had acquired a 10% stake in Double R, an investment vehicle holding around 15.
8% of Moncler's capital.

Double R is controlled by Ruffini Partecipazioni, the holding company of Remo Ruffini, the founder and CEO of the Italian luxury outerwear manufacturer.

The transaction states that Double R plans to increase its stake in Moncler to a maximum level of 18.5% through additional purchases of Moncler shares over a period of approximately 18 months.

These purchases will be financed by LVMH, which intends to increase its stake in Double R to a maximum of around 22%, equivalent - indirectly - to 2.2% of Moncler's share capital.

Both parties say that this partnership will strengthen Remo Ruffini's position as Moncler's main shareholder.

As CEO, Remo Ruffini will continue to define the strategy and steer the development of the Moncler Group.

LVMH, as a long-term and stable minority shareholder of Double R, says it supports Remo Ruffini's vision for the future of the high-end down jacket manufacturer and will have the opportunity to appoint a member to its Board of Directors.

From LVMH's point of view, this transaction represents an interesting opportunity in view of the recent weakness in the luxury goods sector", commented analysts at RBC this morning.

At yesterday's closing price, Moncler shares were down 13% since the beginning of the year, giving a market cap of around E14bn.

On the Milan Stock Exchange, Moncler shares began a vigorous rebound of over 8% on Friday morning.

In Paris, LVMH shares were up almost 2%.


Copyright (c) 2024 CercleFinance.com. All rights reserved.