LVMH take 6 billion 500 million euros acquisition Dior you understand it

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cheap replica Louis Vuitton handbagsMH, the world's number one luxury goods group, said on Tuesday it would acquire all of the shares of Christian Dior group's advanced fashion business Christian Dior Couture.

The transaction of Christian Dior Couture valuation of 6 billion 500 million euros, which is over the past 12 months (as of the end of March 2017 (EBITDA) income tax depreciation and amortization) 15.6 times. After the completion of the transaction, Christian Dior Couture will be incorporated into replica Louis Vuitton onlineMH's fashion and leather sector.

Meanwhile, replica Louis Vuitton bagsMH Group Chairman and chief executive officer of the family group Bernard Arnault will acquire 25.9% stake in Christian Dior group, a small shareholder held in the euro 12 billion. By the end of the book, Paris listed Christian Dior group (Code: CDI) the market value of 45 billion 760 million euros.

Bernard Arnault family group now holds a 74.1% stake in Christian Dior group, according to the offer, Bernard Arnault family (through subsidiary Semyrhamis) to pay 172 euros in cash per share of Christian Dior stock, plus 0.192 shares of replica Hermes bags (Hermes) stock (the second largest shareholder of Arnault family group is Hermes).

The transaction valuation of Christian per share cheap replica Dior handbags shares for 260 euros, compared to April 24th closing price of 226.85 euros higher 14.7%, 18.6% higher than the average price last month, 25.9% higher than in the previous three months, the average price.

Above: the acquisition of Christian cheap replica Dior handbags group's remaining stake in the offer and the stock price comparison

Bernard Arnault said in a statement, Christian Dior Couture is one of the most representative of luxury brands in the world, thanks to this transaction, business structure Christian Dior group will be greatly reduced, thereby strengthening the LVMH group's fashion and leather goods sector.

LVMH group said in a statement, adding that the transaction is expected to be completed in the second half of 2017, will be completed within one year after the completion of the transaction to enhance earnings per share.

Due to the evolution of history, Christian Dior group has advanced fashion business Christian Dior Couture, is also the largest shareholder of LVMH. Christian Dior Couture operates apparel, accessories and jewelry business, and its beauty and fragrance line is owned by the LVMH group. After the completion of the transaction, LVMH will also have Christian Dior Coutue fashion, beauty and fragrance business (see below).

Arnault family group, Christian Dior, LVMH relation interpretation

Before the transaction:

Arnault family group owns 74.1% stake in Christian Dior group and a majority of the voting rights of

Christian Dior owns a 41% stake in LVMH and a voting rights of plus Christian Dior Couture haute couture

Arnault family group also has a 5.8% stake in the LVMH and the right to vote of 6.3%

After the completion of the transaction:

Arnault family group will have up to 100% of Christian Dior group's equity and voting rights (depending on the final outcome of the tender offer)

Christian Dior Christian Dior Couture group in stripping the high fashion business, will no longer operate any actual business, turn into the pure holding company, continue to have a 41% stake in LVMH and 56.8% of the voting rights

Arnault family group has a 5.8% stake in LVMH and a majority of the voting rights (unchanged) of

Christian Dior Couture haute couture business will join the ranks of its fragrance and beauty business, all belong to the LVMH group

Above: the relationship between the three changes before and after the transaction

Christian Dior group net assets valuation

Christian Dior group's net assets include:

Holds a 41% stake in LVMH (LVMH based on the average price of the first three months of the calculation of the value of $40 billion 400 million, based on the average price of LVMH last month, the value of the calculation of 42 billion 700 million euros)

Christian Dior Couture haute couture business valued at 6 billion 500 million euros

Net financial debt minus 1 billion 500 million euros

Net liabilities less than 200 million euros

The total amount is 45 billion 200 million euro to Euro 47 billion 500 million (equivalent to EUR 251 to EUR 263)

Above: Christian Dior group assets and valuation

Christian Dior Couture key financial data

12 months to the end of March 2017, the Christian Dior Couture key financial data are as follows:

Sales of 2 billion euros, EBITDA EUR 418 million, operating profit of EUR 270 million

In more than and 60 countries in the world has a total of 198 stores (China's 20), a total of 5000 employees

93% of sales revenue from retail

Since 2000, sales CAGR of 12%

Sales have doubled since 2011

In early April, LVMH group released the first quarter results of fiscal year 2017, the first quarter ended March 31st, the group's sales of 9 billion 880 million euros, an increase of 15%, for the past five years the best quarter. Among them, Louis Vuitton and Fendi where the fashion and leather sector sales of 3 billion 400 million euros, an organic growth of 15%, an increase of significantly higher than the 2016 full year of 4%. (see "splendid").

But the excellent performance of Bernard Arnault is not blindly optimistic about the future, he for the 2017 full year performance is still cautious, and said, LVMH for the acquisition of the object will be strictly selected as in the past (see the "grand annals": Although the quarter showed a five year best record, LVMH group leader Arnault the future is care-laden).

The first quarter of fiscal year 2017 data Christian Dior group announced earlier that the group's total sales year-on-year increase of 15%, reached 10 billion 400 million euros, organic sales growth rate of 13%, all of its business branches have achieved growth. Among them Christian Dior Couture sales of 506 million euros, an increase of 17% (see "magnificent").

Source: official press release, Reuters

Source: official press release, Dior official website

Editor: LeZhi

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