Ray-Ban Heir Bids $33 Billion

Leonardo Maria Del Vecchio, the 31-year-old heir to the EssilorLuxottica fortune, proposed a roughly $33 billion takeover of Delfin Sarl in a letter sent Monday. The bid seeks to consolidate ownership of the Luxembourg-based holding company that controls the global eyewear giant, which owns brands including Ray-Ban, Oakley, and LensCrafters. According to Bloomberg and the Italian newspaper Corriere della Sera, the proposal is backed by a nearly $25 billion loan from Citigroup.

The offer values the combined 87.5% stake held by his co-owners at 3.7 billion euros. This sum is equivalent to approximately $4 billion and covers the shares held by his five siblings, his half-brother, and his mother. Leonardo Maria currently holds a 12.5% stake in Delfin, which his father, Leonard Del Vecchio, distributed equally among the heirs after the founder died in June 2022. The new proposal would increase his ownership share to 37.5%, giving him a dominant position in the family dynasty.

A competing bid of similar magnitude was submitted on Oct. 20 by Michal Strnad, a Czech arms tycoon with an estimated net worth of $13.5 billion. Strnad’s offer is reportedly slightly higher than the one Leonardo Maria presented this week. The two competing bids have intensified a dispute over the future leadership of EssilorLuxottica, a company with a market value exceeding $97 billion.

Leonardo Maria has positioned himself as the primary critic of EssilorLuxottica CEO Francesco Milleri. He has attributed the company’s recent stock decline to Milleri’s management, noting that shares have fallen more than 32% this year. In his letter, he stated that the new structure would include strengthened governance rules and a binding statute. He also announced that two professionals with extensive managerial, legal, and financial experience would provide binding advice on major decisions.

The Citigroup loan supporting the bid carries a 1.75% interest rate. Leonardo Maria indicated that the acquiring vehicle would rely on this financing and support from an unidentified international institution. He plans to present the specific deal terms to stakeholders on Nov. 7. The proposal comes after the Delfin board rejected his earlier requests for loans to buy out other family members.

Previously, Leonardo Maria sought board approval for loans to purchase a combined 25% stake held by his siblings Luca and Paola. That transaction was valued at 10 billion euros, or about $11.2 billion. The board also rejected a separate attempt to buy out his half-brother, Rocco Basilico. These rejections led Leonardo Maria to pursue a comprehensive buyout of all other shareholders instead.

Personal controversies involving Leonardo Maria have recently drawn public attention. He recently disclosed that his ex-fiancée, Jessica Serfaty, told him she was pregnant but was unsure of the child’s father. He stated that he chartered private jets to transport Serfaty and a team of doctors for paternity tests, including one conducted on his yacht. The results indicated he was not the father. Serfaty had previously accused him of physical assault during their engagement, a claim she later withdrew but later told the New York Times was made under pressure.

Leonardo Maria told The New York Post that the allegations damaged his reputation and complicated business dealings involving EssilorLuxottica and Delfin. He said he hopes the paternity test results will help clear his name, though he did not specify which business interactions were affected. EssilorLuxottica did not immediately respond to requests for comment regarding the new bid.