Merging company

Tod’s sales beat forecast as owners weigh in on delisting

MILAN (Reuters) – Sales at Italian fashion group Tod’s rose 16.4% more than expected in the first nine months of the year as the founding Della Valle family grapples with whether to move on. forward with a proposal to be removed from the group. .

An attempt by the Della Valle brothers to buy out other Tod’s shareholders failed last month when their takeover bid failed to meet the targeted 90% stake threshold.

Chief Financial Officer Emilio Macellari said the Della Valles were still considering delisting by merging Tod’s into the family’s holding company – a possibility discussed in the offer’s investor document.

“I imagine a decision will be made before the end of the year,” Macellari told analysts, adding that the family wanted to keep a friendly attitude towards the market.

Tod’s merger into the family’s corporate vehicle would leave minority shareholders with illiquid stakes in an unlisted entity.

Tod’s revenue totaled 724.9 million euros ($738 million) in the period, beating the 716 million euros forecast in an analyst consensus quoted by Intesa Sanpaolo research, thanks to tourist flows and on local demand in Europe and Italy.

The delisting was Della Valles’ latest attempt to revamp a group that has built its name on craftsmanship but has struggled, like other Italian names, to attract younger buyers in recent years.

“We are confident that we can also achieve good results in the future,” CEO Diego Della Valle said in a statement citing upcoming orders for the spring/summer collection.

The Della Valle family owns 64.5% of the company. ($1 = 0.9829 euros)

(Reporting by Claudia Cristoferi; editing by Valentina Za)