LVMH to distribute Hermès shares, Bernard Arnault to retain 8.5% stake
World’s largest luxury group LVMH, led by French billionaire Bernard Arnault, announced plans to distribute the shares it holds in French maison Hermès International, on 17 December 2014 as a part of the peace accord the two groups signed in September 2014, according to The Wall Street Journal.
LVMH’s principal shareholders, the investment-holding companies Christian Dior and Financière Jean Goujon, will also distribute the shares to their own shareholders. Billionaire Arnault will end up with 8.5 percent stake in the family-controlled Hermès. Arnault and any companies he controls directly or indirectly have pledged not to buy any more shares in Hermès over the next five years.
The peace agreement was signed in September 2014 when LVMH agreed to relinquish its 23 percent stake in Hermès worth €6.4 billion (US$8 billion) in exchange for a commitment by Hermès to drop legal complaints filed against the luxury giant.