The Della Valle family, Tod’s largest shareholder, announced on Wednesday that it was abandoning its public takeover bid for the Italian fashion group. Until the end, it had not succeeded in bringing 90 percent of the outstanding share capital under its own control.
According to the still preliminary results of the takeover bid, the share held by the founding family of the group would have risen to just 86.95 percent. The cancellation of the takeover was punished at around 11:30 a.m. on the Milan stock exchange with a price drop of 17 percent to EUR 32.76, which was well below the price of the takeover bid.
“The shares contributed to the offer will be returned to their respective owners,” read a statement from the family, which had agreed to invest more than 400 million euros in the takeover bid. The Della Valle family, The company, which already owns 64.45 percent of Tod’s, had offered €40 per share, a premium of 20.4 percent to the stock’s closing price on August 2.
Della Valle family sticks to growth plans
The aim of the takeover bid was to accelerate the development of the group and own 90 percent of the share capital in order to be able to take Tod’s off the Milan Stock Exchange. However, Tod’s is not giving up on its growth plans. “Starting tomorrow we will all work together to achieve the implementation of what will hopefully be a very successful project within the required deadlines,” assured the Della Valle family.
The Tod’s group, founded in 1978 by the Della Valle family and known for its studded moccasins, owns the sportier brand Hogan and the French label Roger Vivier, for which the French ex-model Inès de La Fressange acts as brand ambassador. In April 2021, Tod’s announced it would add leading Italian influencer, Chiara Ferragni, to its board to appeal to a younger clientele. (AFP)
This translated post previously appeared on FashionUnited.fr.