Tod's investor calls for L Catterton to raise buyout offer
Reuters
Published Mar 26, 2024 17:49
MILAN (Reuters) - Tod investor Tabor Asset Management has published an open letter calling for an increase in the price offered by L Catterton to buy 36% of the Italian luxury shoemaker, saying the price of 43 euros per share is unfair.
The offer, launched by the LVMH-backed private equity firm in agreement with Tod's controlling shareholder with the aim of taking the group private, started on Monday and will run until May 8.
Tabor Asset Management said on Tuesday that the offer underestimates the value of Tod's brands and fails to recognise the progress the brands have made, it said in an open letter.
"It is a bad deal for Tod's minority shareholders that have held the stock for years," it said.
The fund, which said it owns 1.1% of the group's capital, published a similar letter when Tod's majority shareholder, the Della Valle family, tried to delist the company in 2022.
As of Monday evening, L Catterton said it owned 8.8% of the Italian group, mainly bought before the official launch of the offer but at the same price.
Tod's, whose other brands include Fay and Roger Vivier, did not respond to a request for a comment.
Since the offer was announced in February, Tod's shares have been trading around the offer price of 43 euros per share.
Under the deal, CEO and founder Diego Della Valle will tender his 10.45% stake in the company to L Catterton, while retaining 54% of the company together with his brother Andrea.
LVMH (EPA:LVMH) will keep its 10% stake and L Catterton will own the remainder of Tod's if the tender offer is successful.
L Catterton added that if the threshold required to delist the company is not met, it will take Tod's private by merging the group into the vehicle used to launch the offer.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.