Leonardo Maria Del Vecchio has retained Citigroup (NYSE:C) to advise and arrange financing for a proposed transaction that would expand his stake in the family holding company, Delfin, according to reporting in Italian media.
The bank has been appointed to provide financial advice and to lead the funding structure that would support Leonardo Maria's plan to exercise pre-emptive rights under Delfin's bylaws. Those governing rules, established by the late founder Leonardo Del Vecchio, lay out the mechanism by which a family member may seek to purchase shares offered by siblings.
Under the proposal submitted to Delfin, Leonardo Maria has asked to purchase a 12.5% interest from each of his siblings, Luca and Paola, using the pre-emptive right set out in the company's charter. Were both purchases completed, Leonardo Maria's total holding in Delfin would rise to 37.5%, making him the largest single shareholder in the holding company.
In a separate development, a communication reported by Repubblica indicates that both Luca and Paola have placed price expectations on their respective 12.5% stakes, each requesting around $7 billion. Those stated valuations form a potential pricing reference for the contemplated transfers.
This move centers on a family-controlled holding vehicle and involves a financing package to be structured and led by a major investment bank. Citigroup's role, as described, is advisory and transactional - arranging the financing necessary to support the exercise of pre-emptive rights and the closing of the proposed transfers of ownership between siblings.
The proposal, the bylaws that enable it, and the siblings' stated price expectations are the facts reported; the outcome of the financing process and whether the purchases will be completed have not been reported.
Details about the exact financing terms, timing, or any binding agreements were not disclosed in the available reports. The information published to date focuses on the appointment of Citigroup, the invocation of pre-emptive purchase rights, the potential change in Delfin's ownership percentages, and the price indications reportedly sought by Luca and Paola.