LVMH Moët Hennessy Louis Vuitton SE (“LVMH”), the world’s leading luxury products group, and Tiffany & Co., the global luxury jeweler, announced that they have concluded an agreement modifying certain terms of their initial agreement (the “Merger Agreement”) to reflect a purchase price of $131.50 in cash and to reduce closing conditionality. Other key terms of the Merger Agreement remain unchanged. Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court.
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Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented: “We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”
Bernard Arnault, President and CEO of LVMH, commented: “This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details. We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter.”
Alessandro Bogliolo, Tiffany CEO, said, “We continue to believe in the power and value of the Tiffany brand and the compelling long-term strategic and financial benefits of this combination.”
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The Boards of Directors of LVMH and Tiffany have approved the terms of the transaction and all required regulatory approvals have been obtained. The modified Merger Agreement provides that the regularly scheduled Tiffany quarterly dividend of $0.58 per share due to be declared on 19th November, 2020 will be declared and paid. The merger is expected to close in early 2021, subject to Tiffany shareholder approval and customary closing conditions.