Strnad bids 730 billion crowns for Del Vecchio family holding

Czech billionaire Michal Strnad has offered about 30 billion euros (roughly 730 billion crowns) for Delfin, the Luxembourg holding that manages the legacy of the late Italian entrepreneur Leonardo Del Vecchio, founder of eyewear maker Luxottica. Some of the heirs have already come out against the deal.

Strnad is ready to buy the holding for cash or to acquire a controlling stake of 62.5%. The offer is valid for thirty days and, according to Bloomberg, values Delfin at roughly 30% below the value of its assets. How the deal would be financed is not yet clear: the sum exceeds the latest Forbes estimate of Strnad’s own wealth.

Delfin’s assets include stakes in EssilorLuxottica (the Ray-Ban brand), where the holding owns almost a third, in the real estate group Cavivio, and in the financial companies Generali and UniCredit. The holding belongs to Del Vecchio’s eight heirs, each with 12.5%. Changing its statutes requires the consent of all of them, which is why Strnad is pushing to have that rule abolished.

Leonardo Del Vecchio’s 31-year-old heir spoke out against the bid: “My father’s life’s work must remain the property of Italy.” The family cannot agree on the holding’s future, and half-brother Rocco Basilico recently refused to sell his stake for 3.5 billion euros (about 85 billion crowns). Delfin itself is not commenting on the offer.

In Italy, Strnad already owns the ammunition maker Fiocchi Munizioni, and this year he bought a 14% stake in Pirelli for about 24 billion crowns. He submitted the bid for Delfin through Tilaris, the company that manages his investments outside the defense industry. He also allows for a variant in which the deal would be combined with a buyback of some shares by Delfin itself.

By the Around Prague newsroom