Public Flashes – Agache, the parent company of France’s richest man, Bernard Arnault, has announced that it is entering exclusive negotiations to acquire a majority stake in Ligue 2 football club Paris FC.
According to france24.com on Friday (October 18, 2024), energy drink giant Red Bull has also initiated discussions to acquire a “minority stake” in Paris FC.
Under the terms of the proposed deal, the Arnault family would initially hold 55% of Paris FC’s shares, while Red Bull would take a 15% stake, sources close to the matter revealed.
Pierre Ferracci, a 72-year-old businessman and president of Paris FC since 2012, will retain 30% of the club’s shares until 2027, at which point he plans to sell his shares to the Arnault family, giving them an 85% stake in the club, according to sources.
“With Agache becoming the majority shareholder, the club will enter a new dimension and aim for greater success,” sources were quote as saying.
The holding company aims to progressively elevate the men’s football team back to the elite ranks of French football, mirroring the success of the women’s team, which already competes in the top division.
Bernard Arnault, one of the wealthiest individuals globally, leads the luxury goods conglomerate LVMH. However, he has also diversified into other industries, including gaining control of the weekly magazine Paris Match.
This acquisition could significantly reshape the football landscape in France, a league that has been dominate by Paris Saint-Germain since its takeover by Qatar Sports Investments in 2011.
Bernard Arnault Wealth Drops by $7.94 Billion in a Day
Earlier, Bernard Arnault, the founder and CEO of luxury goods company LVMH, experienced a significant loss in his wealth, almost $10 billion or approximately IDR 155.33 trillion (assuming an exchange rate of 15,533 IDR to 1 USD) in a single day. This followed a sharp 7% drop in LVMH’s stock price after the company reported an unexpected decline in sales in the third quarter.
According to Yahoo Finance on Thursday (October 17, 2024), the luxury goods giant, which owns brands such as Moet & Chandon, Louis Vuitton, and Tiffany & Co., reported a 3% sales drop in the third quarter of 2024, amounting to 19.1 billion euros or $21 billion, which negatively impacted LVMH’s stock.
Before the financial results were announced, Arnault’s net worth was estimated to be around $190 billion or approximately IDR 2,951 trillion. However, since that time, he has lost $8 billion or around IDR 124.29 trillion from his net worth.
This stands in stark contrast to early 2024, when Arnault was the world’s richest person. In March, his fortune peaked at a record $231 billion. However, his wealth has steadily declined as LVMH’s sales continued to plummet.
Last month, the French tycoon fell to the fifth position on the list of the world’s richest individuals after LVMH’s stock dropped by 20%, reducing his net worth by $54 billion, or about IDR 83.92 trillion.
In May 2024, the billionaire also lost $11.2 billion when LVMH shares dropped by 5%.
Despite the decline, the 75-year-old Arnault still holds a substantial fortune of $182 billion, or approximately IDR 2,827 trillion, according to the Bloomberg Billionaires Index. LVMH has not responded to Fortune’s request for comment.
