Family control consolidates at Galeries Lafayette

The Moulin family, historical shareholders of the French retailer Galeries Lafayette Group with a 31.7 percent stake, and bank BNP Paribas have reached agreement on a new phase in the partnership between the two groups. Acting together, the founding Moulin and Meyer families have been the controlling shareholders of the Galeries Lafayette Group until now. The Meyer family has now decided to dispose of its interest in the Galeries Lafayette Group and BNP Paribas, the group's historical partner, has acquired the Meyer family's interest to further support the Moulin family. Following the constitution of a new concert in respect of approximately 60 percent of the group's share capital, SEMAD (a holding company majority owned by the Moulin family) filed a public tender offer for the outstanding share capital of Galeries Lafayette at a price of 235 euros per share. Financing of the offer will be provided by BNP Paribas. The terms on which the Moulin family will acquire control of Galeries Lafayette are as follows:
- Contribution by the Moulin family and BNP Paribas of their shareholding in the Galeries Lafayette Group to SEMAD, a holding company majority owned by the Moulin family;
- Filing of a public tender offer by SEMAD and BNP Paribas for the outstanding share capital of Galeries Lafayette; and
- The relationship between BNP Paribas and the Moulin family as shareholders of SEMAD will be governed by a shareholders' agreement. This will include the terms on which BNP Paribas will be provided with liquidity for its investment, the intention being for BNP Paribas to exit from SEMAD's share capital over time.

The offer price of 235 euros per Galeries Lafayette share represents a premium of 7.2 percent over the one-month weighted average share price at March 24 and a premium of 41.1 percent over the weighted average share price in the month prior to Dec. 14, the day prior to the declaration of an acquisition of more than 10 percent of the share capital of the Galeries Lafayette Group by Crédit Mutuel.