LVMH Close to Deal for Hotel Operator Belmond
December 13 2018 - 7:30PM
Dow Jones News
By Craig Karmin
French luxury-goods company LVMH Moet Hennessy Louis Vuitton SE
is close to a deal to acquire Belmond Ltd., a London-based owner
and operator of high-end hotels around the world, according to
people familiar with the matter.
LVMH is near an agreement to pay $25 a share in cash for
Belmond, a transaction that would value the company's equity at
around $2.6 billion, these people said. That bid would represent a
more than $7 premium to where Belmond shares -- which trade on the
New York Stock Exchange -- closed on Thursday.
Belmond's enterprise value, including debt, would be about $3.2
billion, said people familiar with the offer.
The Paris-based luxury goods company, which owns fashion brands
like Fendi and Louis Vuitton and champagne maker Dom Perignon,
would be a surprise winner in a highly competitive sales process.
For weeks, Middle Eastern and Asian government funds, big hotel
brands and private equity firms have dominated the bidding, say
people familiar with the process.
But LVMH now looks poised to prevail, and announcement could
come as early as Friday, these people said. The French company's
shares closed at EUR255.85 euros, up EUR1.50, or 0.59%, on Thursday
in Paris.
Write to Craig Karmin at craig.karmin@wsj.com
(END) Dow Jones Newswires
December 13, 2018 19:15 ET (00:15 GMT)
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