LVMH REACHES AGREEMENT WITH TIFFANY & Co.
LVMH REACHES AGREEMENT WITH TIFFANY & Co.
FINANCING AND IMPACT ON LVMH
| Total equity value of the transaction: $16.2 billion (i.e. c. €14.7 billion)
| 2020E Net income accretion: estimated around 5%
| Acquisition financing secured through (i) a $8.5bn bridge, (ii) a $5.75bn CP back-up line and (iii) a €2.5bn
RCF, to be refinanced on bond markets
| Impact on LVMH's leverage limited to +1.6x Net Debt/EBITDA in 2020E
|Tiffany's quarterly dividend payment of 0.58$/share maintained before closing
LVMH REACHES AGREEMENT WITH TIFFANY & Co.
NEXT STEPS
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LVMH
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Transaction subject to approval of Tiffany & Co. shareholders and customary regulatory approvals
➤ Preliminary proxy statement to be filed and reviewed by SEC (approx. 3 weeks)
➤ Tiffany Shareholders' meeting to vote on transaction (est. 2 to 3 months)
➤ Regulatory approvals including anti-trust
Closing expected following anti-trust clearances (est. mid 2020)
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