What: Tod’s Group is set to delist from the Milan Stock Exchange on May 8, following a successful tender offer by Crown Bidco Srl, an affiliate of L Catterton, achieving a stake of over 90 percent.

Why is it important: This move showcases a trend where major brands might opt for privatization to gain operational flexibility and faster decision-making capabilities, potentially influencing similar actions by other companies in the sector.

Tod's Group, a prominent Italian luxury firm, announced its delisting from the Milan Stock Exchange effective the end of trading on May 8. The delisting follows a successful voluntary tender offer by Crown Bidco Srl, a subsidiary of L Catterton, which is backed by LVMH Moët Hennessy Louis Vuitton.

The offer reached an aggregate stake exceeding 90 percent of Tod’s share capital, surpassing the threshold needed for delisting. Initially, Crown Bidco aimed to acquire 36 percent of Tod’s at 43 euros per share but adjusted the tender to 27.9 percent after increasing its shareholding to 7.9 percent. The deal now values approximately 398 million euros.

The delisting is strategically aligned with Tod's ambition to implement future growth programs and enhance managerial efficiency, suggesting a shift towards a more flexible corporate structure with reduced management and listing costs. This strategic pivot follows a previous unsuccessful attempt to delist in 2022 and occurs alongside L Catterton's continued expansion in the luxury and consumer sectors, including a recent acquisition of a majority stake in Kiko Milano.

Tods is delisting from the Milan Stock Exchange