Khaberni - Just a few weeks after the death of legendary Italian fashion designer Giorgio Armani, informed sources revealed that representatives of the "Armani" group have already begun preliminary contacts with several potential buyers to sell a minority stake in the company.
The move is seen as an unofficial start to an investment race for one of the most influential fashion houses in the world, according to the French magazine "Fashion Network".
According to sources, this step is in accordance with Armani's will, which required his heirs to sell a 15% stake in the group within 18 months of his death, with the possibility of transferring an additional stake ranging from 30% to 55% to the same buyer, or considering an IPO in the future.
The sources indicate that L'Oréal Group, which has a licensing agreement with Armani until 2050, was among the entities contacted.
It is expected that Rothschild Bank will advise the Armani group in this sensitive process, especially with Irving Belloti, a partner at the bank, being on the board of the Armani Foundation.
However, the discussions are still in their very early stages and may take months before reaching any actual agreement, according to sources who preferred to remain anonymous due to the confidential nature of the negotiations.
In his will, Giorgio Armani set out a clear arrangement for the parties with priority in purchasing, led by the French luxury goods giant "LVMH Group", L'Oréal Group for cosmetics, and "EssilorLuxottica" specialized in eyewear manufacturing, with whom he has a long-standing partnership.
Armani also granted his charitable foundation, which he established to preserve his creative legacy, the right to offer the stake for sale to another entity of the same stature, provided that his life and business partner Pantaleo Dell'Orco approves.
The text of the will, which was published in September after the designer's death on September 4th, reveals that the group's ownership is distributed across six categories of stocks that grant varying voting rights.
Both Armani Foundation (30%) and Dell'Orco (40%) control 70% of the voting rights, giving them joint control over the strategic decisions of the group.
The will also stipulates that the charitable foundation will retain a 30.1% share of the stocks, whether in the event of a sale or if the company is offered for IPO.
Giorgio Armani was the sole owner of his company, which he founded more than fifty years ago, and personally supervised every creative and administrative detail until his death.
The value of the brand is estimated by analysts to be between 5 and 12 billion euros (5.5 to 14 billion dollars), making this anticipated process one of the most awaited deals in the luxury fashion world.
The Italian Notary Union warns that the terms of the will are legally binding, and could lead to legal disputes if not implemented as the designer wished.
