Groupe Arnault, the holding company of Bernard Arnault (the controlling shareholder of the luxury group LVMH), will hold “approximately a quarter” of the capital stock of the personal holding of Arnaud Lagardère, after an increase of capital and purchases of securities, have announced the two parties on Monday.
” The families Arnault and Lagardère have agreed to closer (… ). At the conclusion of a capital increase and the purchase of securities, Groupe Arnault will hold an interest of approximately a quarter of the capital of Lagardère Capital & Management (LC & M), according to a press release, without specifying the financial details of the transaction.
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LC & M will control the company Arjil Sponsored-Arco, managing general partner of Lagard * re SCA, as well as the current participation of 7.26 % of Arnaud Lagardère in the group of publishing, distribution and media. The status atypical of the group, limited partnership by shares (SCA), allows to Arnaud Lagardère (associated partner) maintain control of the group that bears his name with only about 7% of the shares. “This merger will enhance the structure and financial capacity of LC & M. The family groups of Bernard Arnault and Arnaud Lagardère will act in concert vis-à-vis of Lagardère SCA,” says the press release.
An arm of iron with Amber Capital
the accounts of the personal holding of Arnaud Lagardère are the subject of speculation different from the shutdown of their publication in 2009. The investment fund activist Amber Capital, now a prime shareholder in the Lagardère group, was obtained in October of the tribunal of commerce, Paris, publication of accounts of LC & M.
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He wanted to check his level of debt, whereas a general partner is indefinitely liable for the debts of the enterprise on its own assets, and wondered about the use and destination of funds paid by Lagardère in LC & M. The participation of Arnaud Lagardère in the Lagard * re group serves in effect as security for the repayment of debts incurred by its holding company.
Arnaud Lagardère had not complied, but the Lagardère group had indicated in mid-January to the Agence France-Presse, confirming information of the Point, that CL & M was indebted to the tune of 164 million euros in 2019, or a debt less than 22 million euros to the value of the shares of Arnaud Lagardère in the group at the same date, and divided by nearly three since 2008.
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Arnaud Lagardère has recently won, at a general meeting of the group, the arm of iron against its largest shareholder, Amber Capital, which wanted to renew almost all of the supervisory board of the group and then dismiss its manager.
To foil this project, he had to surround himself with the heavy weights of the Scholarship : the financier Marc Ladreit de Lacharrière, in which the holding company Fimalac is, however, remained below 5 % of the share capital of Lagardère and Vincent Bolloré, the strong man of the Vivendi group in media and publishing, which has acquired more than 10 % of Lagardère. To which is added now, via the holding company, LC & M, the support of Bernard Arnault. “I have received favourably the proposal of Arnaud Lagardère us to join him. My friendship with (his father) Jean-Luc Lagard * re bound our families and I have the greatest respect for the group that he has built, ” commented the latter.
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