Arnault reorganises holding to ensure family control of LVMH
BERNARD Arnault is reorganising his holding company as the French billionaire seeks to ensure long-term family control over LVMH, the luxury empire he’s built.
Europe’s wealthiest person is turning Agache, his family holding company, into a joint-stock partnership. The change will guarantee that Agache’s “control over the LVMH group will be maintained over the long term”, according to a statement on Thursday (Jul 21).
The conversion will not affect the current shareholding of Agache, the statement added.
Control of Agache will be exercised by Agache Commandite SAS, whose share capital will be held equally between the 5 children of Bernard Arnault. But he will be the managing general partner of Agache.
LVMH shares slipped about 0.5 per cent in early Paris trading on Friday. The stock has declined 13 per cent this year.
Earlier this year, shareholders approved a plan to lift the limit of the retirement age of the LVMH CEO from 75 to 80. Arnault, the current chief, is 73.
Arnault’s wealth is estimated at US$134.8 billion, according to the Bloomberg Billionaires Index. LVMH is the owner of luxury brands such as Louis Vuitton and Christian Dior.
The Arnault family has a 48 per cent stake in LVMH, according to a regulatory filing. BLOOMBERG
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