A high-stakes battle for control of Delfin, the Luxembourg-based holding company that manages the vast fortune of the late Leonardo Del Vecchio, has intensified. Leonardo Maria Del Vecchio, the 31-year-old heir to the EssilorLuxottica empire, is publicly challenging his family's board over a proposed €10 billion ($11.5 billion) acquisition of his siblings' shares.
The Proposed Buyout
Leonardo Maria Del Vecchio aims to purchase the combined 25% stake in Delfin currently held by his siblings, Luca and Paola Del Vecchio. This acquisition would increase his ownership in the holding company to 37.5%, making him its largest single shareholder. He argues this move would bring greater clarity and stability to the succession of the family's substantial wealth.
The ambitious acquisition relies on securing a complex €10 billion financing package from major European banks, including UniCredit, BNP Paribas, and Credit Agricole. Sources close to the matter indicate this would be one of the largest acquisition financings ever pursued by an individual in Europe.
Escalating Governance Dispute
In an open letter published in the online newspaper Quotidiano Nazionale, which he owns, Del Vecchio accused Delfin's board of failing to provide clear explanations for its shifting stance on the transaction. He stated that lenders involved in the financing had recently sought stronger assurances regarding future dividends, capital stability, and Delfin's long-term strategy, which he described as legitimate requests. However, he criticized the board for not adopting a transparent or unified approach to address these concerns.
Del Vecchio emphasized that the dispute has evolved beyond mere financial considerations, becoming a fundamental governance issue. He questioned why significant concerns about the deal surfaced only after shareholders had approved key elements and after the reorganization had been publicly presented as a stabilizing measure.
Delfin's Influence and Alternatives
Delfin, with a net asset value exceeding €40 billion, holds a significant stake in EssilorLuxottica, the global eyewear giant, and maintains substantial investments in major Italian financial institutions such as Banca Monte dei Paschi di Siena, Assicurazioni Generali, and UniCredit. Its influence is considerable within Italy's corporate landscape, often playing a role in discussions surrounding banking consolidation and financial-sector transactions.
The uncertainty surrounding the financing has led to the consideration of alternative solutions. According to reports, Delfin chairman Francesco Milleri is evaluating a proposal for the holding company itself to buy back the stakes from Luca and Paola Del Vecchio. Under this plan, Delfin would acquire the shares at the previously agreed valuation of approximately €10 billion and then redistribute them among the six remaining heirs. This alternative proposal may be presented to shareholders at the upcoming annual meeting scheduled for June 30.
The dispute marks the latest escalation in the complex succession struggle following the passing of patriarch Leonardo Del Vecchio in 2022. His legacy includes a intricate governance structure that has frequently complicated decision-making among his heirs, leading to the current high-profile challenge over Delfin's future direction.