Singapore’s state-owned investment firm Temasek Holdings is acquiring a 10% stake in Italian luxury fashion house Ermenegildo Zegna Group, in a transaction valued at approximately $220 million.
Under the agreement, Zegna will sell 14.1 million of its own shares to Temasek at $8.95 per share, totaling $126.4 million. This follows Temasek’s earlier purchase of 12.7 million shares on the open market. Upon completion of the transaction, Temasek will hold a total of 26.8 million shares, representing 10% of the company’s outstanding ordinary shares.
The deal marks a significant step in Zegna’s ongoing evolution from a family-run menswear label into a modern high-end leisurewear brand. Founded in 1910 as a woolen mill in northern Italy, Zegna has grown into a global luxury group with a strong focus on craftsmanship and innovation.
With the new investment, Zegna aims to accelerate its international expansion strategy, open new retail locations, and renovate existing stores to enhance customer experience.
“The transaction confirms the strength of Ermenegildo Zegna Group’s vision and reinforces its financial flexibility to serve the further organic growth of its brands,” the company said in a statement.
Nagi Hamiyeh, head of Europe, the Middle East and Africa at Temasek, will join Zegna’s board of directors as a non-executive member following the next shareholders’ meeting.
“We are delighted to welcome Temasek as a strategic investor in our group,” said Ermenegildo Zegna, chairman and CEO of the namesake brand. “This partnership allows us to further strengthen our international expansion and consolidate our position as custodians of authentic brands.”
Nagi Hamiyeh added: “Our investment underscores Temasek’s ongoing commitment to supporting leading European companies with solid performance and global potential. We are excited to become a caring and long-term partner for the Zegna family and management team.”
FashionNetwork.com with Bloomberg & Ansa
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