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Hermes Cried For Battle.

2011/1/28 18:21:00 51

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LVMH has acquired 20.2% of Hermes.

Can you imagine that every 1/5 Hermes Birkin platinum packages now belong to LVMH? If the future Hermes really belongs to LVMH, then the world's independent luxury brands will be reduced.

In the future, it is very likely that whatever luxury you buy will eventually contribute to LVMH, Richemont, PPR and several other luxury goods groups.

This scene

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The drama began suddenly.

Hermes suddenly realized that it was a great enemy when LVMH announced its 17.1% stake in October 21st last year.

In fact, foreplay has been staged.

As early as 2008, LVMH used a financial tool to buy Hermes shares through a number of intermediary companies.

This side of the Hermes worked hard to open up shop and finally carried over the financial crisis. On the other hand, LVMH enjoyed more than doubled its share in the stock market, and it could still pay dividends at the end of the year.

A listed company doesn't care about its stock trading.

Hermes

The cash flow is really good.

Another reason is probably that the proportion of shares issued publicly is very small, so negligence.

When the reaction came, it was not far from the 33% tender offer line.

Of course, the situation is not irrevocable. There are still few Hermes shares in the stock market, and its market value needs to spend about LVMH 3 billion 800 million euros.

And recently, AMF, a regulatory arm of the French securities market, has also been on the side of Hermes, giving Hermes the right to sell its shares.

The problem is that Hermes is not monolithic, the 170 year old France.

Luxury goods

The group brand has been passed on to the sixth generation. In such a long time, the shares must be diluted. The 52 shareholders have a total of 62.8% shares, but no one holds more than 6.3%, less than 1/3 of LVMH.

What is worse is that the Hermes brand is not in the hands of one family, but in the hands of the three families of Dumas, Puech and Guerrand.

Now the chairman of the Hermes group, Patrick Thomas, does not come from the three big families.

So even if the members of the Hermes are now vowing to defend their brands, it is very difficult for 52 people to have a single heart. Not to mention there are several typical "rich n generation" in the sixth generation, and the "black sheep" who only want to sell shares in cash.

Therefore, Hermes plans to aggregate 50.2% of the shares and set up an unlisted holding company to protect the brand control. If the situation is critical, it can give priority to the acquisition of the remaining 12.6% of the shares of the family members.

Now it seems that Hermes's defense has achieved a periodic victory.

But AMF's ruling is not final, it can still be appealed.

Colette Neuville, chairman of the French small shareholders Association ADAM, thinks that less than 10% of the minority shareholders have the power to freely buy and sell shares.

In 2005, Carrefour had a similar case, and finally a small stock of Dongsheng came out.

In fact, there are more than 70% of the Hermes family descendants. Obviously, not all shareholders are involved in the counterattack plan.

Although LVMH boss Bernard Arnault has repeatedly said she has no intention of controlling Hermes, this statement is not legally bound, and there must be some good future to watch.