Press Releases
Bulgari completes franchisees’ buy-back plan and decides to issue a Eurobond of Euro 100 million
Rome, 30 October 2000 – Bulgari, the contemporary Italian jeweller, completed the announced buy-back plan of its franchisees, or significant portions of their operations. The Group announces today the completion of this plan, after recent acquisitions of the operations in Hawaii presented last August.
Bulgari acquired a 51% share of the company managing the three Bvlgari stores in Hong Kong, as well as 51% of the company responsible for the distribution of watches to retailers in the area. Furthermore, 51% of the company managing the Bvlgari stores in Taiwan and the entire Bulgari South Asian Operations Ltd responsible for the stores in Singapore (51% were already controlled by the Bulgari Group) were acquired.
The controlling interest in the Bulgari Japan Ltd joint venture was raised from 51% to 80%. This company manages today 16 stores in Japan generating almost 23% of the total turnover of the Group (as of 30.06.2000).
Francesco Trapani, CEO of the Bulgari Group commented: "Buying back several of our franchisees and distribution companies allows us to better exploit the interesting opportunities and potentials that these markets offer. The direct involvement of Bulgari will furthermore guarantee immediate and effective control of the operations in these areas".
Bulgari will finance these acquisitions by issuing a three year Eurobond for an amount of Euro 100 million; which will also finance the recent acquisitions of Gérald Genta SA, Daniel Roth SA and Manufacture de Haute Horlogerie as well as the restructuring the debt of the Group.
Founded in Rome in 1884, Bulgari is today the third largest jeweller in the world. The Group is controlled by the Bulgari family, holding around 55% of the shares. The remaining 45% is floating on the Milan Stock Exchange and traded at the London SEAQ. The Group capitalizes about Euro 4 billion.
For further information: Francesca Zanoni, Corporate Press Office manager Tel. +39-06.68810594; Francesca.Zanoni@bulgari.com