Luxury company LVMH has its eye on the French couture brand.
Top luxury company LVMH says it plans to buy Christian Dior Couture, a wholly-owned unit of Christian Dior SA. The Arnault family, who owns 74 per cent of parent company, Christian Dior SA, will acquire the remaining 26 per cent in a move to streamline the current shareholder structure, LVMH finance chief Jean-Jacques Guiony told a telephone news conference.
Set up 70 years ago, Christian Dior Couture "is one the most iconic brands worldwide", LVMH said. Its activities range from leatherware, haute couture, ready-to-wear, jewellery and shoes and has a global network of 198 luxury boutiques and its sales have doubled over the past five years.
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At the same time, the Arnault Family Group is planning a public takeover offer to purchase the shares in Christian Dior SA it does not already own. The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International, the statement said.
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The simplification of the shareholder structure appeared to please investors and LVMH shares were showing a gain of around three percent on the Paris stock exchange in response to the news, while the blue-chip CAC 40 index was up just 0.1 percent.