Leading luxury products group LVMH Moët Hennessy Louis Vuitton SE and global luxury jeweler Tiffany & Co. recently announced they have concluded an agreement modifying certain terms of their initial merger agreement to reflect a purchase price of $131.50 in cash and to reduce closing conditionality. Other key terms of that merger agreement remain unchanged.
Both sides have also agreed to settle their pending litigation in the Delaware Chancery Court, a press release from LMVH said.Leading luxury products group LVMH Moët Hennessy Louis Vuitton SE and global luxury jeweler Tiffany & Co. recently announced they have concluded an agreement modifying certain terms of their initial merger agreement to reflect a purchase price of $131.50 in cash and to reduce closing conditionality. Other key terms of that merger agreement remain unchanged.#
“The board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing,” Roger N Farah, chairman of the board of directors of Tiffany, said.
“This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details. We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter,” Bernard Arnault, president and chief executive officer of LVMH, commented.
The boards of directors of LVMH and Tiffany have approved the terms of the transaction and all required regulatory approvals have been obtained.
The modified merger agreement provides that the regularly scheduled Tiffany quarterly dividend of $0.58 per share due to be declared on November 19, 2020, will be declared and paid.
The merger is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions.
Fibre2Fashion News Desk (DS)
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