Del Vecchio Considers Private Debt After BNP Exits €10 Billion Delfin Buyout
Leonardo Maria Del Vecchio's Financing Strategy and Stake Increase in Delfin
MILAN, June 17 (Reuters) - Leonardo Maria Del Vecchio is exploring private debt options to help finance a €10 billion ($11.6 billion) deal to increase his stake in family holding company Delfin, the top investor in EssilorLuxottica, a source close to the Italian businessman said on Wednesday.
Current Stake and Buyout Ambitions
He currently holds a 12.5% stake in Delfin and aims to buy out the stakes of two siblings to raise it to 37.5%. He had been working on a financing package with banks UniCredit, BNP Paribas and Credit Agricole.
Bank Consortium Challenges
Delays and BNP Paribas' Exit
The move to look at private debt comes as reaching a final agreement with the banks is taking longer than expected and follows BNP Paribas’ exit from the deal, the source added. A second source confirmed that BNP Paribas has left the banking consortium, as reported by Italian newspaper MF.
BNP was not immediately available for comment.
Alternative Financing Options
Italian daily Il Sole 24 Ore reported on Wednesday that Del Vecchio is exploring alternative financing options, including contacts with U.S. fund Apollo Global Management .
Del Vecchio and Apollo declined to comment.
Background on Delfin and Family Structure
Inheritance and Ownership Distribution
Leonardo Del Vecchio - the founder of the family business empire - died in 2022. In his will, he divided Delfin equally among his six children, as well as his widow and Rocco Basilico, her son from another marriage.
Ongoing Negotiations and Legal Disputes
Del Vecchio is racing to close the deal with his siblings by the end of June, although negotiations are taking longer than expected over guarantees and legal disputes with Basilico, a third source said.
Del Vecchio and Basilico have reached a provisional agreement to settle an inheritance dispute and drop cross-lawsuits but a final agreement hasn't been reached yet.
Delfin's Investment Portfolio
Major Holdings
Luxembourg-based Delfin owns 32.4% of Ray-Ban maker EssilorLuxottica and it is the largest shareholder in Italian lender Monte dei Paschi with a 17.5% stake. It also holds 10.1% of insurer Assicurazioni Generali and roughly 2.8% of UniCredit.
Upcoming Shareholder Meeting
A meeting of Delfin shareholders is expected to take place on June 30, another source added.
($1 = 0.8619 euros)
(Reporting by Elisa Anzolin, additional reporting by Elvira PollinaEditing by Keith Weir)
