French luxury conglomerate LVMH and Hermès have revealed details surrounding the settlement agreement which will put an end to the four year dispute regarding LVMH's increasing 23.2 percent stake in Hermès, which is estimated to be worth nearly 6.5 billion euros.
In September the two parties announced that they had signed an agreement which would see LVMH distribute all of its Hermès shared to its shareholders, on the understanding that Christian Dior, which currently controls 40.9 percent of LVMH shares through Financière Jean Goujon, would disburse the shares to its own shareholders.
The board of directors at LVMH will submit a resolution to its shareholders during a combined general meeting, which will be held on November 25, to approve of the distribution of the shares. If approved by the board, the share distributions will be paid on December 17.
LVMH, Christian Dior and Financière Jean Goujon, companies which are all held by Bernard Arnault, have agreed not to acquire any new shares in Hermès for the next five years, with the exception of Hermès shares representing rights to “fractional interests or non-distributed shares due to the distribution ratio,” said the holding company in a press release.
These shares are said to be sold no later than September 3, 2015.