Moncler surges on LVMH deal
By Michele Maatouk
Date: Friday 27 Sep 2024
(Sharecast News) - Moncler surged on Friday after LVMH bought a 10% stake in Double R, the investment vehicle controlled by the holding company owned by Moncler chief executive and chairman Remo Ruffini.
Under the terms of the transaction, Double R will lift its stake in Moncler to up to 18.5% through further purchases of Moncler shares over a period of about 18 months. The funding of such purchases will be provided by LVMH, increasing its investment in Double R to approximately 22%.
The partnership between Ruffini Partecipazioni Holding and luxury brand LVMH will reinforce Remo Ruffini's position as the largest shareholder of the Italian luxury clothing brand.
The deal will mean LVMH has the right to appoint two members to the board of Double R and one member to the board of Moncler.
Remo Ruffini said: "This partnership reinforces Double R's position in Moncler and provides the stability needed to execute my vision for the future.
"I have long admired Bernard Arnault's entrepreneurial spirit and unique understanding of the luxury sector, and I am delighted he so clearly supports my long-term ambitions for our group's extraordinary brands."
LVMH chairman and CEO Bernard Arnault said: "Moncler has been one of the most significant entrepreneurial success stories in the industry over the past twenty years.
"Remo Ruffini's vision and leadership are remarkable and I am delighted to invest in his holding company to reinforce his position as leading shareholder on Moncler and support the independence of the Moncler Group."
At 0900 BST Moncler shares were up 9.4% at €57.00, while LVMH was 2.3% higher at €694.10.
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