Czech weapons billionaire sets eyes on Italian-owned Ray-Ban brand

Czech billionaire Michal Strnad is reportedly offering up to EUR 30 billion (more than CZK 700 billion) to acquire the Italian family holding Delfin – which include eyewear manufacturer and Ray-Ban owner EssilorLuxottica.

Italian daily Domani was the first to report on the possible deal, soon followed by Bloomberg citing internal documents, but Strnad has yet to comment on or confirm the offer.

Delfin has a controlling stake in EssilorLuxottica, which produces the iconic Ray-Ban glasses among other companies spanning from eyewear to insurance and banking.

Submitted last week, the offer from the 34-year-old Czech billionaire and owner of the CSG defense group is reportedly valid for 30 days and any change in ownership would have to be approved by all eight shareholders of Delfin.

In the letter seen by Bloomberg, the Czech arms billionaire is reportedly seeking to buy out the entire holding – one of the largest Italian family fortunes with a market value of over EUR 40 billion – but keeps the door open for a controlling stake of 62.5 percent in the company.

Strnad may face an uphill battle in convincing the eight heirs and shareholders of Delfin, who each owns an equal 12.5 percent stake in the conglomerate. The Czech businessman’s offer also comes amid growing disputes between the shareholders, some of whom are considering selling their shares while others have opposed any buyout attempts.

The first to comment on the media reports, the founder’s heir Leonardo Maria Del Becchio confirmed that he was aware of the offer from the Czech side but insisted that the company should remain in Italian hands.

“My father’s life work must remain a benefit to Italy,” he said in a statement.

Owner and chairman of Czechoslovak Group (CSG), Czechia’s leading arms and ammunition manufacturer which he took over from his father, Michal Strnad’s fortune is estimated at about CZK 350 billion – putting him in the top three richest Czechs depending on the various rankings.

CSG went public on the Amsterdam Stock Exchange last January, marking the largest IPO of a defense company and originally making it the most valuable publicly traded company in Central Europe.

His takeover offer for the Italian family holding, however, came from the conglomerate bringing together Strnad’s business stakes outside of the defense and security sector.