LVMH to consolidate hold on Dior in multibillion-euro deal

French billionaire Arnault's LVMH buying Christian Dior for $13 billion

The deal reshuffles LVMH's complex corporate relationship with Christian Dior and the Arnault family.

The €13 billion deal will be made through "a simplified public offer by the Arnault family group for Christian Dior shares - that it does not now hold - and take form of a primary offer consisting of €172 per share in cash and 0.192 Hermès worldwide shares for each Christian Dior share, and would be completed by two secondary offers, in cash and in Hermès shares respectively", LVMH said in a statement, reports the BoF.

Through Semyrhamis, a company held by the Arnault family, the group will file a simplified mixed public offer on Christian Dior shares it does not own, which are equal to 25.7 percent of the share capital.

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.

Shares in Christian Dior soared 12% on the news in early trading in Paris, while LVMH was up about 3%.

Last year, revenues amounted to more than two billion euros and it booked underlying or operating profit of 270 million euros.

Mr Arnault said the deal was an "important milestone".

The world's top luxury company LVMH said Tuesday it plans take full control of Christian Dior (Swiss: CDI.SW - news) in order to harness the "high growth potential" of "one of the world's most iconic brands", whose sales have doubled over the past five years.

Mr Arnault said the move illustrated his family's commitment and confidence in LVMH and its brands. "I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide".

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