Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Richemont launches pounds 1bn bid to buy remainder of Vendome

Sameena Ahmad
Saturday 29 November 1997 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Richemont, the Swiss-based conglomerate owned by South Africa's wealthy Rupert family, has launched a pounds 1bn cash bid to buy out the minority shareholding in Vendome, which owns some of the world's most glamorous luxury brands, including Dunhill, Cartier, Mont Blanc and Chloe, Stella McCartney's Paris fashion house.

Richemont, which already owns 70 per cent of Vendome, is offering 495p a share for the remaining 30 per cent, valuing Vendome, quoted in London and Luxembourg, at pounds 3.45bn.

The price is a 26 per cent premium to the shares' pre-bid value. Vendome's shares closed 79p higher yesterday at 472.5p.

Though Johann Rupert, chief executive of Richemont, is hoping for a recommendation from Vendome's board, he said that the company may decide not to proceed with the offer if the world's financial markets collapsed further and threatened Vendome's markets.

However, speaking at the group's interim results, Joseph Kanoui, Vendome's chairman, said the financial turmoil had not affected the spending habits of its wealthy customers.

Mr Rupert expects the deal to go ahead smoothly. He said: "This is a generous premium for the minority shareholders. We only approached the board yesterday. We wanted to give them an opportunity to announce their half-yearly results without being prejudiced by a deal. That strategy cost us 60p in one day."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in