Arnault family simplifies LVMH control via Agache structure

Bernard Arnault and his family plan to simplify the structure controlling luxury group LVMH Moët Hennessy Louis Vuitton. The initiative will place the group under a single entity, Agache SCA, after delisting holding company Christian Dior from Euronext Paris.

Under the plan, Agache SCA will directly hold 49.76% of the capital of LVMH and 65.55% of the voting rights. The structure consolidates almost all of the Arnault family's current holding in LVMH, which stands at 50.33% of the capital and 66.27% of voting rights. The reorganisation aims to secure long-term family control and prepare for succession.

As part of the delisting, the family must launch a mandatory cash tender offer for the 2.44% of Christian Dior shares it does not own. Based on Tuesday's market value, that minority stake is worth about 1.63 billion euros ($1.85 billion). Minority shareholders may tender their shares for cash or roll over into Agache alongside the family.

Christian Dior plans to hold an extraordinary shareholder meeting before the end of this year to vote on the changes. The tender offer is scheduled for the first quarter of next year, subject to approval from French securities regulator AMF. The transaction will not include a squeeze-out of remaining shareholders.