BRDH Burani

    RNS Number : 7317W
  Burani Designer Holding N.V.
  13 June 2008
   


    Total return swap in respect of Mariella Burani Fashion Group ("MBFG")

    Burani Designer Holdings N.V. ("BDH" or the "Company") announces that it will (i) terminate on 2 July 2008 the existing cash-settled,
total return swap in respect of 791,192 MBFG shares (the "Shares") entered into with Lehman Brothers International (Europe) (the "Swap
Counterparty") on 29 October 2007 (the "Existing Swap") and (ii) enter into a new cash-settled, total return swap with the Swap Counterparty
in respect of 791,192 Shares, representing 2.6% of the total outstanding shares of MBFG (the "New Swap") with an effective date on 2 July
2008 and a term of approximately 6 months.

    BDH has taken the decision to terminate the Existing Swap and to enter into the New Swap because it believes that it is in the best
interests of the Company to extend for a further six months the period during which it will have economic exposure to the Shares in the same
way as if it directly owned the Shares, but at a considerable reduced capital requirement. BDH will not have legal ownership of, or voting
rights over the Shares.

    The initial price of the Shares referenced by the Existing Swap is EUR 22.60 per Share (the "Initial Price of the Existing Swap"),
corresponding to a notional amount of approximately EUR17.9m.  The Existing Swap will be terminated at a price equal to the aggregate value
of the difference between 99.90% of the Prezzo di Riferimento of the Shares as quoted by the Milan Stock Exchange on 2 July 2008 and the
Initial Price of the Existing Swap.

    The initial price of the Shares referenced by the New Swap is 100.00% of the Prezzo di Riferimento of the Shares as quoted by the Milan
Stock Exchange on 2 July 2008 (the "Initial Price of the New Swap"). Upon termination of the New Swap, if the reference price of the Shares
(subject to certain administrative costs of the Swap Counterparty) (the "Final Price of the New Swap") is above the Initial Price of the New
Swap, then BDH will receive the aggregate value of the difference between the Final Price of the New Swap and the Initial Price of the New
Swap; conversely, if the Final Price is below the Initial Price, then BDH will pay the aggregate value of the difference between the Final
Price of the New Swap and the Initial Price of the New Swap.

    Provided BDH would otherwise be free to deal in the Shares, the Company may agree with the Swap Counterparty to unwind the New Swap at
any time during its term.

    MBFG, which is controlled by BDH, operates in the fashion apparel, leather goods and jewellery market segments. Its ordinary shares are
listed on the Mercato Telematico Azionario of Borsa Italiana and on the Star segment since it was established in March 2001. For the year
ended 31 December 2007, MBFG reported pre-tax profits of EUR 53.5m.

    Since its IPO in June 2007, BDH has purchased a total of 2,440,608 Shares, for a total consideration of EUR 48,069,130, taking its
ownership from 52.765% to 60.925% of MBFG's outstanding share capital. The current market value of BDH's stake in MBFG's outstanding share
capital is approximately EUR 299.0m, based on MBFG's closing share price of EUR 16.41 as at 13 June 2008.

    As a result of these share purchases, together with the effect of the swap arrangements described above and other outstanding
derivatives transactions, BDH will have combined economic exposure to 66.9% of MBFG outstanding share capital.



 Enquiries:

 Burani Designer Holding N.V.         Tel: +39 02 7642 0111 / +39 348 256 1971
 Carol Brumer

 Lehman Brothers International        Tel: +44 20 7102 1000
 (Europe)
 Matteo Saviotti

 Citigate Dewe Rogerson               Tel: +44 20 7638 9571
 Kate Delahunty
 Sarah Gestetner
 www.buranidh.com

This information is provided by RNS
The company news service from the London Stock Exchange
 
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