Leonardo Maria Del Vecchio Proposes 22 Billion Dollar Deal for Delfin Shares

Leonardo Maria Del Vecchio has launched a major move to reshape the ownership of Delfin, the Luxembourg-based financial holding company of the late billionaire founder of Luxottica. Through an open letter published in QN Quotidiano Nazionale, the 31-year-old entrepreneur proposed acquiring six 12.5% stakes from his brothers and sisters for approximately 3.7 billion dollars each. The entire transaction is backed by a preliminary financial commitment of 22 billion dollars from American banking giant Citigroup.

The initiative follows a recent 30 billion dollar proposal from Czech tycoon Michal Strnad to acquire the holding company. Delfin holds substantial stakes in major European corporations, including a 32.4% share in EssilorLuxottica, alongside holdings in Generali, UniCredit, and Covivio. By countering the foreign bid, Leonardo Maria Del Vecchio seeks to keep the family's extensive business empire under Italian ownership and control.

In his letter, Del Vecchio acknowledged past tensions and legal disputes following his father's passing more than four years ago. "Since our father passed away, I have felt the weight of guarding what he built. Not always have I done it the right way. In these years I have sought different solutions and sometimes I chose the path of conflict. I recognize it: there were mistakes, also in tone, and I am not proud of it," he wrote. As a gesture of reconciliation, he stated that he has instructed his legal team to drop ongoing lawsuits against certain family members.

The financial structure of the proposed buyout relies on Citigroup providing a "highly confident letter" to assist in securing up to 22 billion dollars for the acquisition of a 75% stake. If successful, this would raise Leonardo Maria Del Vecchio's holding from 12.5% to 87.5%, granting him the majority needed to alter dividend policies and utilize corporate cash flows to service the incurred debt.

The proposal presents heirs with two distinct exit strategies. They can opt for an immediate cash payment, or choose an alternative structure involving an upfront cash payment for 30% of their shares, with the remaining 70% settled in EssilorLuxottica stock within 12 to 14 months. Furthermore, the acquisition vehicle would implement strict governance rules, including two independent board members with veto power over major financial decisions to reassure markets and family members.

Despite the ambitious scale of the plan, the offer has met immediate resistance. Four of the eight shareholders—Rocco Basilico, Paola Del Vecchio, Clemente Del Vecchio, and Luca Del Vecchio—promptly rejected the proposal, mirroring their earlier rejection of Strnad's bid. Some heirs have expressed ongoing grievances, including unfulfilled financial claims related to previous aborted transactions.

Leonardo Maria Del Vecchio has invited the other shareholders to meet either individually or collectively by November 7 to discuss the project in detail. "I do not ask anyone to renounce their ideas. I ask to evaluate a solution that can keep together those who want to leave and those who want to stay," he stated, emphasizing his commitment to protecting his father's legacy.