EssilorLuxottica heir seeks multibillion deal to buy out siblings

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The heir of the late Italian billionaire Leonardo Del Vecchio says he is nearing a deal to buy out two of his siblings from the family holding company, a move that would end a protracted succession dispute and consolidate his influence over corporate Italy.

Luxembourg-based Delfin, which is the largest investor in Ray-Ban maker EssilorLuxottica and in Banca Monte dei Paschi di Siena, has been hampered by infighting between Del Vecchio’s heirs since his death in 2022.

“We are close to agreeing a price,” Leonardo Maria del Vecchio told the FT. “I have been very clear I am willing to buy their stakes in order to become Delfin’s main shareholder, close the outstanding issues around my father’s estate and execute my father’s will which is embodied by what Francesco [Milleri] is doing.”

In his will, Del Vecchio split ownership of Delfin between his six children and his widow, who ended up with the largest share, while also providing for payouts to his longtime lieutenant Francesco Milleri, chief executive of both Delfin and EssilorLuxottica.

Those payments have been frozen amid the family dispute, however, and the stand-off has stalled dividend distributions and hampered Delfin’s ability to take big decisions.

Leonardo Maria said he was in talks to triple his holding to 37.5 per cent, a deal that would make him the largest shareholder in a company that counts some €56bn of net assets, including a significant stake in insurer Generali.

Analysts have suggested that a deal would probably be struck at a discount to Delfin’s net asset value. Leonardo Maria told the FT that a transaction would be structured as a leveraged buyout backed by a pool of unnamed banks, but that as the group’s biggest shareholder, he would focus on safeguarding the company his father founded, EssilorLuxottica.

“EssilorLuxottica is our crown jewel and we never want to be diluted, Delfin must have cash to fund a capital increase one day if it is ever needed,” Leonardo Maria said. Delfin declined to comment.

EssilorLuxottica’s shares have soared since Del Vecchio’s death, with Milleri’s focus on medical technology and a lucrative Meta partnership pushing the group’s market capitalisation above €100bn. The 30-year-old is the only family member with an executive role at EssilorLuxottica, where he serves as chief strategy officer.

“Francesco [Milleri] is the person who reminds me of my father more than anyone else,” Leonardo Maria said.

The debt needed to fund the buyout of his siblings would be serviced by dividends, he added.

“There are €7bn of reserves we could distribute as an extraordinary dividend, then we can establish a dividend policy that envisages distributing more than €1bn per year while leaving Delfin with sufficient buffers to face any scenario,” he said.

Delfin’s dividend policy requires the support of six of its eight shareholders, under the company’s bylaws. Luca and Paola Del Vecchio, the pair exploring the sale of their 12.5 per cent stakes, have previously opposed dividend payouts.

Last year they sought to transfer their stakes to a separate vehicle so that they could be sold. That move required the consent of all other shareholders, however, and the pair failed to secure the support needed.

The siblings have since appealed to a Luxembourg court to fix a price for the transfer and pave the way for them to sell. But the other shareholders retain a right of first refusal over stake sales.

Leonardo Maria said he was willing to wait for the court or to strike a deal with his siblings beforehand. “I don’t intend to make a power move . . . I want to build trust after four years of disputes,” he said.

Luca and Paola Del Vecchio could not be reached for comment.

He has separately taken legal action against his mother Nicoletta Zampillo and his half-brother Rocco Basilico, after she transferred half of her 25 per cent stake to Basilico.

Leonardo Maria said he did not have any hard feelings towards his half-brother.

“My father envisaged that stake going to Rocco only upon our mother’s death,” he said. “I just want things to be fair; I am only asking her to make sure her remaining 12.5 per cent stake will pass on to me when she’s gone, so that it remains within the family and Delfin’s stability is secured.”

He added: “I don’t want to play games with my father’s legacy.”