PARIS, April 25 Luxury goods group LVMH
and the family holding company of billionaire
businessman Bernard Arnault, who heads up LVMH, announced on
Tuesday a deal to simplify the Christian Dior business structure
which they said would boost LVMH's earnings.
Arnault's family company said it would offer 172 euros in
cash and 0.192 shares in Hermes, in which Arnault also
has a stake, to buy each remaining Christian Dior
share it does not currently hold.
LVMH will also buy the Christian Dior couture brand from the
Christian Dior holding company for an enterprise value of 6.5
billion euros ($7.1 billion). Arnault has controlling stakes in
both the current Dior structure and LVMH.
"The corresponding transactions will allow the
simplification of the structures, long requested by the market,
and the strengthening of LVMH's Fashion and Leather Goods
division thanks to the acquisition of Christian Dior Couture,
one of the most iconic brands worldwide," Bernard Arnault said
in a statement.
($1 = 0.9203 euros)
(Reporting by Sudip Kar-Gupta; Editing by Christopher Cushing)