The family that controls Hermès International revealed the details of a 12 billion euro family holding company with a 50.2% stake in the business,
the
Financial Times
reported.
The family established the holding company to protect the luxury goods group and demonstrate family unity after LVMH boosted its stake in Hermès to 21.4%.
Family members will have the right of first refusal of shares held by relatives. The
FT
reported that “about 72” family members have put their shares into the holding company, called H51. The only one who did not is the largest shareholder, Nicolas Puech, who owns about 6%. Puech is the brother of Bertrand Puech, who is chairman of the limited partnership that controls the company. The
FT
report said that Nicolas Puech wants to put his shares in a foundation.
The report said the holding company will keep one-third of the annual dividends and will use those funds to buy shares from family members who want to sell. After 20 years, family shareholders can have one third of their shares in the holding company repaid to them, the article said. (Source:
Financial Times,
Dec. 15, 2011.)
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