- FashionUnited |
The French luxury giant LVMH is finalizing the sale of its 25 percent stake in Textil Lonia SA. The Spanish textile group owns Purification Garcia and Carolina Herrera brands in Spain. Although the operation is being undertaken with the utmost discretion, sources close to the company have revealed that the output of LVMH stake in the company founded in Orense by the Dominguez siblings (all but Adolfo, owner of the eponymous fashion brand), Josefina, Francisco and Jesus, is scheduled for mid-August.
Domínguez siblings might acquire LVMH´s stake in Textil Lonia
As published by 'Economía Digital’, the historic partner of Dominguez brothers will divest its stake, a transaction that has already been communicated to the Board of Directors of Sociedad Textil Lonia and which will be submitted to the general meeting of shareholders, held on 18 August.
Sources close to the matter said the Dominguez brothers are most likely to exercise their right to buy the 25 percent stake that has been in the hands of the LVMH group so far, through its investment firm Sofidiv.
As communicated in the invitation to the General Meeting of Shareholders of the Galician textile group, besides the "examination by the shareholders of Sofidiv´s sale of its share package", the "period shall be submitted to the board, where appropriate, by the shareholders or the company of its right of first refusal, according to the provisions of art. 9.4 of the bylaws on the shares offered for sale. "
LVMH could estimate its 25 percent of Textile Lonia in about 40 million euros, according to the assessment that the French group made of its Spanish participated company owned and is contained in the annual report for 2013 LVMH.
Textile Lonia is headed by Josefina Dominguez and counts on her brother Francisco Javier Dominguez as the CEO. The company recorded sales of over 231 million euros in 2012.