MILAN (Reuters) - The chairman and founder of Italian luxury goods group Tod’s (TOD.MI), Diego Della Valle, has raised his potential share of voting rights in the firm above 80%, after widening an accord with Credit Agricole to buy shares on his behalf.
Italian market regulator Consob said on Tuesday that Della Valle’s share of voting rights would rise to 81.19% thanks to the expanded contract with Credit Agricole.
Shares in Tod's closed up 8 percent after the news, in a wider market that fell 1% .FTITLMS.
A document on Tod’s website dated Aug. 14 showed Della Valle had committed to buy up to 2.4 million shares from Credit Agricole by Nov. 26, up from a previous ceiling of 1.7 million.
Like other Italian fashion brands, Tod’s has been struggling to rejuvenate its image and product offering to attract younger shoppers and relaunch flagging sales.
To demonstrate his confidence in the company, famous for its Gommino loafers, Della Valle unveiled the agreement with Credit Agricole in December.
Della Valle reiterated that he and his family would continue to buy Tod’s shares when the company reported a 5% drop in first-quarter sales on Aug. 7.
Thanks to a loyalty share scheme, the family currently holds 76.7% of voting rights with an equity stake of about 63%.
Tod’s Chief Financial Officer Emilio Macellari denied this month that the family could consider taking the company private.
Reporting by Valentina Za; Editing by Mark Bendeich