Key Takeaways
- • Leonardo Maria Del Vecchio is exploring private debt options to finance a €10 billion ($11.6 billion) deal to lift his stake in family holding company Delfin from 12.5% to 37.5% by buying out two siblings, according to a source close to the businessman.
- • BNP Paribas has moved away from the financing, with two sources saying the French lender has grown more cautious as several requested conditions remain unmet, after the deal had been pursued with UniCredit and Credit Agricole.
- • Il Sole 24 Ore reported that Del Vecchio has contacted U.S. fund Apollo Global Management about alternative financing; Del Vecchio and Apollo declined to comment.
- • Negotiations are behind schedule, with the source saying final bank agreements are taking longer than expected and Del Vecchio racing to close by the end of June.
- • Delfin holds 32.4% of EssilorLuxottica, 17.5% of Monte dei Paschi, 10.1% of Assicurazioni Generali and about 2.8% of UniCredit, and a Delfin shareholder meeting is expected June 30.
Summary
Leonardo Maria Del Vecchio is exploring private debt to help fund a €10 billion ($11.6 billion) transaction that would increase his stake in Luxembourg-based family holding company Delfin from 12.5% to 37.5%, a source close to the Italian businessman told Reuters on Wednesday. The purchase would buy out the stakes of two siblings. Delfin is the top investor in EssilorLuxottica, which it holds a 32.4% stake in, and it is also the largest shareholder in Monte dei Paschi with 17.5%. It further holds 10.1% of Assicurazioni Generali and roughly 2.8% of UniCredit.
Del Vecchio had been structuring a financing package with UniCredit, BNP Paribas and Credit Agricole. According to two sources, BNP Paribas has recently moved away from the deal, while a third said the French lender had become more cautious as several of its requested conditions remained unmet. BNP was not immediately available for comment. The source close to Del Vecchio said reaching a final agreement with the banks was taking longer than expected, which prompted the move toward private debt.
Il Sole 24 Ore reported on Wednesday that Del Vecchio is exploring alternative financing, including contacts with U.S. asset manager Apollo Global Management. Del Vecchio and Apollo declined to comment.
The transaction is time-sensitive. A third source said Del Vecchio is racing to close the deal with his siblings by the end of June, though negotiations are slowed by guarantee terms and legal disputes with Rocco Basilico, stepson of the late founder. Leonardo Del Vecchio died in 2022 and divided Delfin equally among his six children, his widow and Basilico. Del Vecchio and Basilico have reached a provisional agreement to settle an inheritance dispute and drop cross-lawsuits, but a final agreement has not been reached. A Delfin shareholder meeting is expected on June 30, a source added.
Del Vecchio had been structuring a financing package with UniCredit, BNP Paribas and Credit Agricole. According to two sources, BNP Paribas has recently moved away from the deal, while a third said the French lender had become more cautious as several of its requested conditions remained unmet. BNP was not immediately available for comment. The source close to Del Vecchio said reaching a final agreement with the banks was taking longer than expected, which prompted the move toward private debt.
Il Sole 24 Ore reported on Wednesday that Del Vecchio is exploring alternative financing, including contacts with U.S. asset manager Apollo Global Management. Del Vecchio and Apollo declined to comment.
The transaction is time-sensitive. A third source said Del Vecchio is racing to close the deal with his siblings by the end of June, though negotiations are slowed by guarantee terms and legal disputes with Rocco Basilico, stepson of the late founder. Leonardo Del Vecchio died in 2022 and divided Delfin equally among his six children, his widow and Basilico. Del Vecchio and Basilico have reached a provisional agreement to settle an inheritance dispute and drop cross-lawsuits, but a final agreement has not been reached. A Delfin shareholder meeting is expected on June 30, a source added.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.