Posted Jul 21, 2022, 6:51 PMUpdated on Jul 21, 2022 at 6:52 PM
Ensure his family’s control over the LVMH group. Bernard Arnault, the founder of the global luxury giant (owner of “Les Echos”), will transform the Agache holding company, the controlling shareholder of Christian Dior and LVMH, into a partnership limited by shares.
“This new structure will allow the long-term sustainability of family control and the uniqueness of the expression of the voice of the controlling shareholder within Christian Dior SE and LVMH SE”, explains the press release.
Five children at parity
Concretely, control of Agache will be exercised by a general partner, Agache Commandité SAS, whose capital will be held by the five children of the CEO of LVMH – each with a 20% stake. Bernard Arnault will be the first and only general partner manager of Agache, Agache Commandité SAS being intended to be designated general partner manager thereafter. In addition, the share capital of Agache will remain entirely held by the Arnault family group, henceforth as limited partner.
“The LVMH group is a family-based group whose vocation is to support the long-term development of each of its houses while respecting what makes them unique and their strength,” says Bernard Arnault. In this respect, the transformation of the Agache company into a limited partnership announced today, which does not change its current shareholding, ensures the long-term sustainability of its control over the LVMH group”.
Long used by the Michelin family to maintain its control over the Clermont-Ferrand tire manufacturer, sponsorship facilitates transmission within a family business. It is also proving to be an effective hostile anti-takeover weapon, by dissociating the management and ownership of capital. At the end of November 2021, the Arnault family held 47.8% of the capital of LVMH.
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