Notes to myself: EssilorLuxottica

I have written about the EssilorLuxottica merger here.

The transaction would entail a strategic combination of Essilor’s and Luxottica’s businesses consisting of (i) Delfin contributing its entire stake in Luxottica (approx. 62%) to Essilor in return for newly-issued Essilor shares to be approved by the Essilor shareholders meeting, on the basis of the Exchange Ratio of 0.461 Essilor shares for 1 Luxottica share, and (ii) Essilor subsequently making a mandatory public exchange offer, in accordance with the provisions of Italian Law, to acquire all of the remaining issued and outstanding shares of Luxottica pursuant to the same Exchange Ratio and with a view to delist Luxottica’s shares.

 

EssilorLuxottica_chart.PNG

This is a Chart of bought companies from 16.01.2017 till today. Luxottica have performed poorer.

I have found no news on the deal “not going through”.

 

Some Math:

Essilor is at 108,226 Euro today

Luxottia is at 49,30  Euro today

“on the basis of the Exchange Ratio of 0.461 Essilor shares for 1 Luxottica share”

108,226 * 0.461 = 49.892 Euro …

Bottom Line:

Buy Luxottia at 49,30€ … get value of 49,89€ … 1,1% difference = minimal

 

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