The world leader in luxury LVMH increased its stake in Hermès to 22,28% of the share capital, against the 21,4% previously held. The French Financial Markets Authority (AMF) announced it on Tuesday, after last week Hermès had created a family holding company precisely to protect itself from the designs of LVMH itself.
“LVMH has exceeded the threshold of 15% of the voting rights in the Hermès International company, as it indirectly holds 23.518.942 shares of Hermès International, representing 22,28% of the capital and 16,00% of the voting rights of this company“, reads the AMF press release.
Bernard Arnault's group made a surprise entry into the capital of Hermès last year. Indeed, on 23 October 2010 he had announced that he held 17% of the luxury saddler, acquired through complex financial instruments (“equity swaps”). He later increased his stake to 21,4%. Hermès, still a family company, had reacted instinctively and indignantly, demanding the exit of LVMH from the capital.
But Louis Vuitton Moet Hennessy explained that his investment had “a strategic and long-term character”, and that it was not his goal "to take control of Hermès International or to present a takeover bid".
The Hermès family, which controls more than 72% of the company's capital, officially created an anti-LVMH holding company in mid-December in which it blocked 20% of the capital for 50,2 years, with the right of first refusal on another 12,3%. Only one family shareholder did not enter the holding, Nicolas Puech, who owns 6%.
