Safilo Group SpA shares plunged earlier this week on the back off LVMH’s news on a soon to be closed deal to get into Marcolin’s equity.
Market experts voice their concerns about that the eyewear maker could lose some business with LVMH, which is nearing a bid for a minority stake in the also Italian glasses-maker Marcolin SpA, according to people familiar with the matter quoted by Reuters.
On the opposite trend, LVMH Moet Hennessy Louis Vuitton edged 0.5 percent up, after reports that the company is close to buy around 10.0 percent stake in Marcolin.
The stake sale could value all of Marcolin, owned by buyout firm PAI Partners, at as much as 500 million euros, one of the sources said. The deal is expected to be announced this month, though no final decisions have been made.
If sealed, the deal will give the world’s largest luxury goods group more control over the production process at the company, which currently manufactures its Emilio Pucci line of glasses, and may ultimately make Marcolin a production hub for its other brands, including Celine, the sources familiar with the negotiations said. It’s worth recalling that Celine has an agreement to manufacture its glasses with Safilo, which is due to terminate at the end of this year.
On the wake of the news, shares of Safilo, which also has other license agreements with LVMH, fell 15 percent to 6.75 euros in Milan after earlier dropping as much as 21 percent, the biggest decline since 2014, reported ‘Forbes’.