Famous Italian jewelry house Bulgari will now be part of the French holding Louis Vuitton Moet Hennessy (LVMH), which specializes in luxury goods and already owns several dozen famous brands.
The takeover process will take place through an exchange of shares. Bulgari will acquire 16.5 million shares LVMH, which is 3% of their total number. Holdin will become the owner of 50.4% shares of the jewelry company, acquiring 156.5 million of them. Absorption Bulgari cost LVMH in the amount of 3.7 billion euros, while the capitalization of the company is 2.3 billion euros (according to trading ended on Friday, March 4). And that means a premium of 61%.
Management Bulgari Spa (and the company was still a family business and owned by the Bulgari family) now gets the ability to appoint their own people to the board of directors LVMH. The Bulgari family said that they took such a step in order to strengthen the already good position of their company.