Buyout deal for Galeries Lafayette
Bank teams up with family shareholders
A buyout for French retailer Galeries Lafayette has been launched by one of its biggest shareholders, the Moulin family, backed by French bank BNP Paribas.
The retailer, which operates the Galeries Lafayette department store chain as the Monoprix store business, has remained under the control of the founding Moulin and Meyer families for more than a century.
However, a deal for the Meyers to sell their stake of 29.5 per cent to BNP Paribas has now been approved by the retailer’s supervisory board. The move will end long running disagreements between the two families over the running of the business.
The bank is now backing a €235 a share offer for other shares in the business. The bid is to be made through by SEMAD, a holding company for the Moulin family, and BNP Paribas. The plan is for the Moulin family to own about 62 per cent of the business and BNP Paribas 38 per cent.
BNP Paribas will also increase its interest in Cofinoga, the store’s credit operation, from 49 per cent to 50 per cent. Through this business Galeries Lafayette is one of the biggest providers of consumer credit in France.
