In a surprising turn of events, Tod’s founder and chairman, Diego Della Valle, has made the unexpected decision to abandon the company’s plan to delist. This decision comes after the initial buyout offer presented by Della Valle and his brother Andrea failed to receive enough support from other investors.

The buyout offer, which was set at 40 euros per share, fell short of the required threshold of 90% support. As a result, Della Valle and his brother had the option to de-list the company through a merger with their holding company, DeVa Finance. However, they have chosen not to pursue this alternative, as it could be perceived as hostile or unfavorable to the market.

Della Valle acknowledges the concerns of shareholders who believed that the value of Tod’s was higher than the offered valuation. In a press release, he stated, “We noted that some of our shareholders believed the value of the Tod’s group to be significantly higher than our valuation and preferred to remain in possession of their shares.”

This decision by the Della Valle family demonstrates their commitment to maintaining a market-friendly approach and avoiding any hostility towards investors. Despite their initial intentions to delist the company, they have respected the wishes of shareholders who have chosen to hold onto their ownership.

However, the future of Tod’s remains uncertain following this development. The company, renowned for its high-quality luxury shoes and leather goods, will need to explore alternative strategies to address the concerns and expectations of its shareholders. In an ever-evolving fashion industry, Tod’s must adapt and find creative solutions to stay competitive.

This unexpected turn of events highlights the complexities and challenges faced by luxury brands in today’s market. Although the Della Valle family had hoped to take the company private, the feedback from shareholders has forced them to reconsider their approach. It will be intriguing to observe how Tod’s navigates this situation and the steps they take to ensure the long-term success and growth of the brand.

Useful links:
Tod’s Official Website
Business of Fashion