LVMH to jointly own and control Heng Long, one of the world’s leading and most renowned tanneries of crocodilian leather, together with its founding family
Paris and Singapore – LVMH Moët Hennessy — Louis Vuitton (“LVMH”), the world’s leading luxury products group, and the Koh family, the founders and controlling shareholders of Heng Long International Ltd. (“Heng Long”), have reached an agreement to jointly own and control Heng Long. Heng Long is a valued and trusted supplier of fine quality crocodilian leather to luxury and high-end fashion products manufacturers globally, including LVMH. It is a family-run tannery in its fourth generation, based and listed in Singapore, whose origins were founded in the early 1950’s. It is widely recognized for its tanning and finishing expertise and craftsmanship. The partnership with the Koh family will strategically complement LVMH in the procurement of high quality crocodilian skins. It will furthermore benefit Heng Long’s suppliers and customers, through the continuous development and promotion of industry-leading finishing techniques and its increased financial means. This is an excellent fit between two partners who share demanding standards for sustainable development and conservation of wildlife species. Under this agreement, HLI Holding Pte. Ltd. (“HLI”), a dedicated holding company, will make a cash offer (the “Offer”) for 100% of the outstanding shares in Heng Long for a total consideration of S$160.8 million (i.e. approximately €92million). HLI has received irrevocable undertakings from the Koh family to accept the Offer in respect of their entire shareholding interest of Heng Long shares, representing approximately 74% of the total issued share capital of Heng Long. Following the close of the Offer, the Koh family will re-invest a substantial portion of their proceeds from accepting the Offer and, as a result, HLI will be owned 51% by LVMH and 49% by the Koh family. Demonstrating their commitment to Heng Long’s business, the Koh family has entered into a long term shareholders’ agreement with LVMH. Mr. Chon Tong Koh and Mr. Choon Heong Koh have committed to remain as Managing Director and Executive Director of Heng Long respectively for at least five years. LVMH and the Koh family intend to pursue Heng Long’s present strategy, to further develop its expertise and to continue to act as a leading partner for Heng Long’s suppliers and customers.