Puig Group keen to buy LVMH stake in Textile Lonia

Tuesday, 19 August 2014
Grupo Puig, the Catalonian perfumery group, is keen to acquire the 25 percent stake that LVMH has held up to date in Sociedad Textil Lonia (STL), the Galician company that produces items under the Carolina Herrera and Purification Garcia brands. Both the Dominguez family - which now controls 75 percent of the Galician group's capital – and Puig have shown interest in buying LVMH shares in Textil Lonia.

Sociedad Textil Lonia (STL), the Galician company that produces items and brands Carolina Herrera Purification Garcia plans to make official the Louis Vuitton Moet Hennessy (LVMH) exit from its capital this week.

Puig Group and major shareholders bid for LVMH's 30 million stake

The French luxury giant owned to date a quarter of the shares of STL through Sofidiv society. This shareholding is valued at about 30 million euros, although none of the parties have officially ruled on the matter.

On August,19 STL shareholders will address this issue, as well as the exercise "by the shareholders who so wish, of their right of first refusal" on the stake for sale.

Sources familiar with the matter indicate that the Domínguez family – Josefina, Jesús and Francisco – which holds a majority stake with 75 percent of the shares in Textil Lonia, has been negotiating the transfer of securities with LVMH over "more than a year and a half".

Now, after weeks of intense negotiations, sources close to Textile Lonia say that the deal could be sealed "throughout this month." Notably, the input of another potential buyer, the Puig Group, could slow down the final decision.

In this regard, financial sources explained that the potential entry of Puig would be confirmed before December, 31.

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