Delfin, agreement on reorganisation between Leonardo Maria Del Vecchio and Rocco Basilico

Banks towards the green light

In the background, the work of the banks called upon to finance the rise of Leonardo Maria Del Vecchio in the capital of Delfin by taking over the shares of Luca and Paola Del Vecchio continues. A transfer of shares that would concentrate 37.5% of the holding company in the hands of a single heir. The green light from the financial company's shareholders' meeting for the distribution of 80% of profits for three years. represented the most important condition of the operation. Having received that, work concentrated on two strands. Firstly, the banks involved in the operation, led by UniCredit, Bnp Paribas and Credit Agricole, and secondly, the guarantees. In fact, the scheme of the deal revolves around three key guarantees. The first, probably the most important, was the shareholders' go-ahead for the distribution of more generous coupons, and thus that 80% of Delfin profits approved by the shareholders' meeting. Resources, evidently, that will be used by the vehicle Lmdv Fin to repay the charges on the line itself. The last act, namely the agreement between Leonardo Maria and Rocco, armours that resolution at several levels and thus paves the way for the financing operation itself. In addition, a pledge would be made on the LMDV Fin vehicle through which Leonardo Maria Del Vecchio would take over the 25% shares from his brothers Luca and Paola. Lastly, the banks would have requested "a mandate to sell" from Leonardo Maria Del Vecchio himself, which would be triggered in the event that the value of Delfin, and therefore the value of the assets attributable to it, starting with Essilor Luxottica, fell below a certain threshold. In this case, the entrepreneur would be obliged to sell enough of his stake in Delfin to reinstate the guarantees, and the buyer of that package would evidently be Delfin itself. Lastly, we learn, support would be requested from Delfin's board in drawing up a business plan for the holding company that would provide for greater flexibility in the management of financial holdings in the event of adverse situations. The reference is to the stakes in Mps (17.5%), Generali (10%) and UniCredit (2.7%), which in the scenario of a sharp drop in the markets and in the holding company's value must be free to be valued in order to restore the overall balance.