Qatar Luxury Group (QLG) entered into exclusive sales talks with Tolomei Participations for the sale of Le Tanneur. In March 2016, QLG first signaled plans to sell off its stake, as reported by Les Echos, but now all is confirmed.
As for the terms of the deal, Tolomei will control a majority stake in the French leather goods brand. Led by Eric Dailey, Tolomei is a leading leather industry player in France, and already has investments in a number of brands and firms across the sector (Pare Gabia, Renaud Pellegrino and PK-214).
The new deal, which looks to establish a minimum recapitalisation of 13.3 million euros for the brand has been accepted by the firm’s advisory board as of June 21, according to a statement from Le Tanneur.
“This recapitalisation and development plan looks to significantly improve Le Tanneur’s prospects, allowing the repayment of QLG ‘s 9.5 million euro shareholder loan to date, while having the means to continue development and to partner with Tolomei’s recognised expertise and experience in the manufacturing and distribution of luxury leather goods,” read the press release.
The whole operation will take place in three phases. First up, a capital increase reserved for Tolomei at a price of 2.5 euros per share for a total of 10.8 million euros. To compare, in 2011, QLG had parted with 6.51 euros per share at the takeover bid that had seen it take control of the French company. Under the new terms, Tolomei Participations will hold 50.2% of the company’s capital and voting rights. Qatar Luxury group’s stake will fall to 42.6%, ceasing its majority hold.
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