PARIS, April 25 (Reuters) - 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