Italian holding company Delfin explores funding for potential internal stake buyout, sources say

By Reuters News

MILAN, Oct 15 (Reuters) - Delfin, the holding company of Italy's Del Vecchio family and top shareholder in EssilorLuxottica ESLX.PA, has held preliminary talks with banks to explore financing options for a possible purchase of stakes in Delfin held by one or more shareholders, two people close to the matter said on Thursday.

Disagreements among the eight heirs of late EssilorLuxottica founder Leonardo Del Vecchio have left Delfin in a prolonged deadlock, preventing the family from ending a succession dispute and acting cohesively to influence decisions at the holding company.

The discussions on taking over stakes are at a very early stage and there is no certainty they will lead to a transaction, the people added.

Delfin declined to comment.

Italy's Corriere della Sera reported on Thursday that Delfin was exploring the acquisition of two shareholders' stakes, equivalent to about 25% of the company. It did not identify the two shareholders. Such a deal would reduce the number of heirs holding shares in Delfin from eight to six, leaving each with an interest of roughly 16.5% instead of 12.5%.

Delfin has a net asset value estimated at around €40 billion ($44.87 billion), with the bulk of it coming from the 32.4% stake in EssilorLuxottica. It also has minority stakes in Italian bank MPS BMPS.MI and insurer Assicurazioni Generali GASI.MI among others.

In the first half of this year, Leonardo Maria Del Vecchio sought to buy out two of his siblings, offering around €10 billion for a combined 25% stake in Delfin, but the deal did not materialise.

At that time, EssilorLuxottica CEO Francesco Milleri, who is also Delfin chair, welcomed a streamlined Delfin ownership structure.

Italian daily Il Sole 24 Ore reported on Thursday that discussions were focused on a possible acquisition by Delfin of the 12.5% stake held by Leonardo Maria Del Vecchio, who earlier this week renewed criticism of Chief Executive Francesco Milleri's leadership of EssilorLuxottica.






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